# What is Bitcoin Halving?
Bitcoin halving is a pre-programmed event in the Bitcoin protocol that occurs approximately every four years (or every 210,000 blocks). It is the monetary policy that makes Bitcoin a deflationary asset.
When a halving occurs, the reward that miners receive for validating transactions and adding new blocks to the blockchain is cut in half.
Genesis (2009):* 50 BTC per block
2012 Halving:* 25 BTC
2016 Halving:* 12.5 BTC
2020 Halving:* 6.25 BTC
2024 Halving:* 3.125 BTC
This mechanism is Satoshi Nakamoto's genius way of controlling inflation and ensuring that the total supply of Bitcoin never exceeds 21 million coins.
## Why It Matters: The Supply Shock
In Economics 101, price is determined by supply and demand.
1. Supply: The amount of new Bitcoin entering the market drops by 50% overnight.
2. Demand: If demand remains constant or increases (due to ETFs, institutional adoption), the price must rise to find a new equilibrium.
> "The Halving is the only event in finance where the supply of an asset is mathematically guaranteed to decrease, regardless of the price."
## Historical Impact on Price Cycles
History doesn't repeat, but it often rhymes. Every previous halving has kicked off a parabolic bull run.
### 1. The 2012 Cycle
Pre-Halving:* ~$12
Post-Halving Peak:* ~$1,100
Outcome:* Massive viral adoption for the first time.
### 2. The 2016 Cycle
Pre-Halving:* ~$650
Post-Halving Peak:* ~$20,000 (Dec 2017)
Outcome:* Mainstream media coverage and the ICO boom.
### 3. The 2020 Cycle
Pre-Halving:* ~$8,500
Post-Halving Peak:* ~$69,000 (Nov 2021)
Outcome:* Corporate treasuries (Tesla, MicroStrategy) and El Salvador adoption.
## What to Expect in the 2024-2025 Cycle?
The 2024 halving is unique for several reasons:
Spot ETFs:* For the first time, massive institutional wall of money has easy access to Bitcoin.
Miner Health:* Efficient miners will thrive, while inefficient ones will capitulate.
Scarcity:* Bitcoin's inflation rate (approx 0.8%) will drop below that of Gold.
### Strategic Outlook
While the halving is bullish in the long term, the immediate aftermath can be volatile. Miners may sell reserves to cover costs, leading to temporary price dips ("Miner Capitulation").
Smart investors typically view the 12-18 months following a halving as the "Golden Bull Run" window.
Disclaimer: This article is for educational purposes. Past performance is not indicative of future results.