Bitcoin Halving is the phenomenon of reward reduction that changes the crypto world.

In late 2025, the cryptocurrency community once again floods into understanding the most important event of the past four years: “Bitcoin halving.” This is an event that analysts worldwide closely monitor and strategize around. Since the first halving in 2012 up to now, Bitcoin halving is a mechanism designed by Satoshi Nakamoto to balance the supply of Bitcoin, ensuring its value remains stable and tends to increase based on the principles of supply and demand.

What is Bitcoin Halving? An Explanation from the Basics

First, we need to understand that Bitcoin halving is a deeper event than just a number. It does not mean reducing the total number of Bitcoins in the system but rather cutting the reward miners receive for discovering a new block (Block Reward). When 210,000 blocks are mined, the system automatically halves this reward.

This event occurs approximately every 4 years, or when about 210,000 blocks are created (equivalent to 210,000 blocks × 10 minutes per block = 2.1 million minutes, or roughly 4 years). The key significance of Bitcoin halving is controlling the influx of digital currency into the market, as Satoshi Nakamoto set the maximum supply of Bitcoin at 21 million coins.

History of Bitcoin Halving: Three Events That Changed the Market

The importance of Bitcoin halving has increased over its 12-year history. Since 2012, this event has occurred three times:

First: November 2012 - The block reward decreased from 50 BTC to 25 BTC. At that time, it was anticipated that prices would rise due to reduced supply. Indeed, Bitcoin’s price climbed from $2 to $12.

Second: July 2016 - The reward decreased from 25 BTC to 12.5 BTC. During this period, Bitcoin was around $650 and surged to nearly $20,000 by late 2017.

Third: May 2020 - The reward decreased from 12.5 BTC to 6.25 BTC. This event drew significant attention from institutional investors, with prices increasing over 12% on halving day, signaling continued upward momentum.

Why Does Halving Happen Every Four Years? An Economic Perspective

The financial stability of Bitcoin in the digital age is rooted in Satoshi Nakamoto’s design. If supply increases endlessly without limits, Bitcoin would lose value like regular fiat currency. Therefore, halving acts as an inflation control mechanism.

The basic principle is that when supply decreases and demand remains constant or increases, prices tend to rise naturally. This has been proven each time. As a result, investors expect halving to influence returns, often leading to price appreciation.

Impact on Bitcoin Price: Market Facts

The significance of halving is measurable through its effect on price. Each halving event is generally followed by a price increase, as most analysts predict. However, the price does not always rise immediately; often, the market reacts in advance due to anticipation. Miners and investors wait for additional market signals.

Currently, Bitcoin is priced at $67,970 (as of February 26, 2026), up 6.10% in the past 24 hours. The impact of halving continues to influence investor sentiment.

When Is the Next Halving? Looking Toward 2028

Bitcoin underwent its fourth halving in April 2024, reducing the reward from 6.25 BTC to 3.125 BTC. The importance of halving remains, as the market prepares for the fifth event, expected around 2028.

Typically, the next halving occurs around March to April every four years. Long-term investors are already planning their strategies to position themselves before this key cycle.

Advantages: Why Does Halving Matter?

One key reason investors focus on halving is its potential benefits. First: reducing the influx of new Bitcoins can increase prices from supply-demand perspectives.

Second: halving is a predictable event, occurring on a well-defined schedule without central authority interference. This transparency builds trust, making Bitcoin more credible among investors.

Third: the reduction in rewards helps sustain the proof-of-work process, as mining difficulty and hash power adjust to the decreased rewards, maintaining network security and value.

Disadvantages: Challenges for Miners and Market Uncertainty

However, halving is not entirely positive. Miners face direct challenges; those with high power consumption but low efficiency may struggle to compete after rewards halve.

Another risk is market uncertainty. If prices do not increase as expected or demand drops, miners could incur losses. Often, price rises are driven not solely by halving but by other factors like institutional investments or major developments in cryptocurrency.

Investment and Action: What Should I Do?

For those wanting to understand the digital market more deeply, keeping up with news is not enough. Many honest investors who do not understand halving miss opportunities.

For investors: understanding halving helps inform better decisions, but it is not the only factor. Bitcoin prices also depend on government policies, monetary policies, and blockchain adoption.

For miners: halving is a critical event. Prepare in advance by assessing whether your equipment is efficient enough. Upgrades or other adjustments may be necessary.

Summary: What Is Bitcoin Halving?

Bitcoin halving is a significant event that changes the landscape of cryptocurrencies. Every four years, miners receive half of their previous rewards, reducing supply and generally leading to price increases based on economic principles.

This phenomenon has been proven through historical data from 2012 to the present. The next halving is expected in 2028, and investors worldwide are already preparing for this key signal.

Therefore, Bitcoin halving is not just a technical number but a mechanism that maintains the sustainability of the digital financial system. By 2140, when Bitcoin reaches its cap of 21 million coins, halving will cease. The market continues to watch how society will accept and adapt to digital currencies like this.