Halving is a reduction in the reward for mining and creating a new block in the Bitcoin network that miners receive. The event occurs every 210,000 blocks, or approximately once every four years. The rules of this procedure are written into the cryptocurrency's code, which means that it simply cannot be influenced without the expressed consent of the majority of blockchain users.


When will Bitcoin halving take place

Halving cycles are one of the main mechanisms of the Bitcoin network, which involves halving the remuneration in BTC for miners. Correspondingly, bitcoin issuance is also halved, as miners’ remuneration – not counting commissions – is the only source of new coin issuance.

From the inception of Bitcoin until the first halving, miners received 50 BTC per block as remuneration. Then the bitcoin amount was reduced to 25 BTC, and in the next cycle to another 12.5 BTC. Now miners get 6.25 BTC for mining a block. This process is shown more clearly in the chart below, provided by the Cointelegraph news outlet.

Bitcoin halving progress

The previous halving took place on 11 May 2020. The next halving is tentatively due in April 2024. The date of the halving can be predicted to within a couple of days, because the block extraction time fluctuates around 10 minutes due to the automatic complexity change mechanism. That is, Bitcoin issuance is completely transparent and predictable, unlike the dollar, euro and other traditional currencies.

Meanwhile, Bitcoin’s hash rate has reached an all-time high

Halwings are considered very important events for Bitcoin for another reason – some time after previous cycles there was an explosive rise in the price of the main cryptocurrency. For example, before the first halving, BTC was worth about $127, before the second halving its price rose to $758 and before the third halving it reached $10,943.

Bitcoin price during previous halvings


It is important to note that halving alone does not have a magical effect on Bitcoin and its exchange rate. Yes, it reduces the number of new coins in circulation, but the vast majority of them have already been mined, which means that the BTC circulation situation does not change much.

Halving times are likely to roughly coincide with the rise and fall cycles of Bitcoin and the cryptocurrency niche in general, which are inherent in all assets and markets. This is why some crypto enthusiasts assume that it is halving that leads to growth - although in essence it is simply a gradually subsiding and growing investor interest.


We believe that halving does not lead to market bullishness per se. It does, however, accurately validate the operation of the blockchain according to pre-defined rules. It also brings cryptocurrencies to the attention of people outside the field.

Halving cryptocurrencies

Another interesting piece of news this week is the details of billionaire Ilon Musk’s purchase of Twitter. After the event itself, it emerged that cryptocurrency exchange Binance was also involved in the deal. Binance CEO Changpen Zhao confirmed that his company had added $500 million to the $44 billion amount for which Ilon purchased the social platform.

The purchase statement lists several other entities with additional contributions: Sequoia Capital ($800 million), Andreessen Horowitz ($400 million), Qatar Holding ($375 million), Fidelity ($316 million), DFJ ($100 million) and other well-known institutional investors. The total support from this list of investors is approximately $7.1 billion.

Binance chief executive Changpen Zhao

With most of the discussion about crypto taking place on Twitter, it’s not surprising that news of Musk’s acquisition of the platform has caused so much excitement. The billionaire himself has also been an active participant in the crypto community for quite some time. He was the main reason behind Dogecoin’s meteoric rise early last year.

His Twitter acquisition campaign began on 4 April, when Musk first bought a 9.2 per cent stake in TWTR. Shortly thereafter, he was appointed to the company’s board of directors, but relinquished the position a few days later. He eventually made an offer to buy the company, and on 25 April, the company’s management eventually accepted a bid of $44 billion. The billionaire is now looking to integrate a host of innovations into Twitter, many of which could be related to the crypto market.


We think the next Bitcoin halving will also bring a lot of attention to the cryptocurrency sphere. It is possible that the event will not lead to a rise in coins - yet as the digital asset sector matures, the rise and fall cycles mentioned may trivialize or become less pronounced. Still, the role of cryptocurrencies and blockchain is huge right now, so in theory there may not be a prolonged bearish trend of several years.