Bitcoin Halving — Everything You Need to Know

Rekt Capital
The Startup
Published in
12 min readSep 6, 2019

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The amount of Bitcoin that gets created every 10 minutes gets cut in half every four years.

This is known as the Bitcoin Halving. The next Halving will be Bitcoin’s third and will take place in May 2020. This is when the current block reward of 12.5 Bitcoin every 10 minutes will be cut in half to 6.25 Bitcoin.

Seeing as the maximum supply cap for Bitcoin is 21 million, halving the block reward means that it will take longer for all Bitcoin to enter circulation.

But this also means that less and less new Bitcoin will be created over time and due to its limited supply — Bitcoin will continue to become increasingly scarce.

And scarcity enhances value.

Historically, the Bitcoin Halving has proven to be an important catalyst that propels Bitcoin into a new Bull Market.

In fact, Bitcoin tends to begin its new bull trend at least a year before its Halving.

But what effect does the Bitcoin Halving have on Bitcoin’s price?

In this article, I will address the following questions:

  • How did each of the previous two Bitcoin Halvings affect Bitcoin’s price?
  • Are there any recurring tendencies as to how these two Halvings affected Bitcoin’s price?
  • How could Bitcoin’s upcoming third Halving potentially affect Bitcoin’s price?

Bitcoin Halving #1 — November 2012

Bitcoin’s price in the context of its first Halving

The first ever Bitcoin Halving took place at the end of November 2012.

It took approximately 513 days for Bitcoin to rally over 13,000% from the $2.01 bottom to the Market Cycle top of $270.94.

Bitcoin’s first Halving was a key catalyst that spurred significant growth and a new bull cycle for Bitcoin.

As soon as Bitcoin reached its post-Halving peak of $270.94, the 2013 Bear Market began as Bitcoin’s price declined 80%. This Bear Market lasted approximately 87 days.

Bitcoin Halving #2 — July 2016

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Rekt Capital
The Startup

Cryptocurrency trader and analyst. I share insights about Bitcoin, the cryptocurrency market, and human psychology.