What Is Bitcoin Halving?

By Anders Bylund – Updated Apr 9, 2025 at 10:04 AM

Key Points

Bitcoin halving reduces miner rewards by 50% about every four years to limit inflation.
Post-halving, Bitcoin's value may rise as supply diminishes, affecting investment value.
Investors should monitor market changes post-halving and consider dollar-cost averaging.

Have you heard of a Bitcoin halving? It's an important event in the world of cryptocurrency, changing the economic model of creating new Bitcoin (BTC -3.15%).

Every four years, the rewards that Bitcoin miners receive for solving complex puzzles are cut in half. It's a bit like slowing down the printing of new money, which can make Bitcoins more valuable over time. If you stick around, I'll tell you all you need to know about Bitcoin halving and how it might affect your investing moves.

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Image source: Getty Images.

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The third halving reinforced the idea of Bitcoin as "digital gold," a potential hedge against inflation and currency devaluation. The months following the halving also saw an increase in the adoption of Bitcoin by major companies and financial institutions. The broader market reach further legitimized cryptocurrency as an investment class and set the stage for spot-price ETFs a few years later.

As the third halving showed, these events can shape market sentiment and Bitcoin's price chart. It highlighted the importance of timing, market conditions, and macroeconomic factors in influencing the outcomes of such events.

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About the Author

Anders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.

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Anders Bylund has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.