Some crypto experts are challenging the notion that the bitcoin halving is going to bring on a prolonged bull market. Crypto is still relatively new, so nothing should be taken as a certainty, says Omid Malekan, an adjunct professor at Columbia Business School. He adds that when it comes to the bitcoin network, nothing changes for anybody during a halving except for miners: There's a misconception that the halving reduces the overall supply of bitcoin, but it really just reduces the amount of new bitcoin coming on the market, Malekan says. The plan is that there will still ultimately be 21 million coins, as was always intended. Plus, the halving is no surprise. Update My Cookie Consent For example, after the first bitcoin halved in 2012, its price jumped from $12 to $1,000 by the end of 2013. After the second halving, which took place in 2016, the BTC price rose from $670 to $20,000 in the space of just a few months. Finally, at the time of the third bitcoin halving in May 2020, it cost $8,700 before rising to $63,500 by April 2021.

Of course the fact that 21 million Bitcoins have been generated doesn’t mean that there are actually 21 million Bitcoins that can be spent. You need to take into account that there are many lost Bitcoins which will never be recovered (it’s assumed that 1/3 of the Bitcoins mined until today were lost). Bitcoin Halving #1 — November 2012 Bitcoin sets itself apart from conventional currencies managed by central banks through its fixed supply mechanism. Specifically, there will only ever be 21 million bitcoins in existence, and at present, slightly fewer than 2 million are left to be mined. Roughly 90% of Bitcoin’s entire supply has already been mined, with an estimated 900 being mined per day. This limited availability is maintained through a process called "halving”, strategically crafted to control inflation and progressively enhance its value.