Halving
A scheduled reduction in the rate at which new coins are created.
Also called: bitcoin halving · halvening
In plain language
Bitcoin’s halving occurs roughly every four years, cutting the block reward in half and slowing the growth of supply.
It is fully known in advance, which is exactly why its price impact is debated. Markets generally price in scheduled events ahead of time.
The event itself is often quiet. The volatility tends to arrive in the anticipation and the aftermath rather than on the day.
Why it matters
Halvings are a useful reminder that a well-known future event is already reflected in price. Trading a date everyone has on their calendar is rarely an edge.
Common mistakes
- Assuming a scheduled, publicly known event is unpriced.
- Sizing up around the date on the basis of historical patterns from a very small sample.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
How much and how quickly an asset’s price moves over a given period.
A market where assets are bought and sold for immediate delivery and full ownership.
Overweighting recent outcomes when judging what is likely to happen next.
Any cryptocurrency other than bitcoin.
An extended period of rising prices and generally positive sentiment.