Beginner's guide, Introduction to Bitcoin halving mechanism

🪙 What is Bitcoin Halving?

Bitcoin Halving is a structural mechanism that happens approximately every four years.
At this point, the block rewards miners receive for mining new blocks will be halved.

Bitcoin was designed from the beginning with a total supply cap of 21 million.
The halving mechanism exists as a core design to gradually slow down the issuance rate of Bitcoin.

👉 In other words, the halving is not so much an 'event',
Rather, it is a systemic device to maintain the scarcity of Bitcoin.

📉 Why is the halving so important?

The reason the halving attracts attention is that — supply decreases.

  • The number of new Bitcoins flowing into the market decreases

  • The selling pressure from miners is relatively reduced

  • The market's perception of 'scarcity' continues to strengthen

When demand remains unchanged or continues to grow, while supply decreases,
prices naturally find it easier to form upward pressure.

📊 Reviewing the performance after several past halvings:

  • 2012 Halving → Upward cycle begins

  • 2016 Halving → Long-term bull market

  • 2020 Halving → Set a historical high

Similar trends have appeared multiple times.

⚠️ Halving ≠ Immediate price increase

Many people expect a surge immediately on or after the halving day.
But the logic of the market is not that simple.

📌 Because the timing of the halving is known in advance,
related expectations are often reflected in the price in advance.

Therefore, after the halving, it is often seen:

  • Consolidation

  • Short-term correction

  • Volatility decreases

👉 Therefore, rather than saying the halving is a 'signal for immediate price increase',
it is better understood as an important reference point for medium to long-term trend changes.

🔍 How to view the market after the halving in 2024~2025?

The market environment for this halving is significantly different from the past.

  • Bitcoin ETF approved

  • Institutional funds continue to enter the market

  • Macroeconomic factors (interest rates, liquidity) have a deepening impact

Under multiple factors combined,
it is difficult to assert that the market will completely replicate past trend patterns.

But even so, the halving still has a profound impact on market structure in the following aspects:
✅ Supply continues to tighten
✅ Mining structure changes
✅ Willingness to hold long-term increases

🧠 More realistic strategies for responding to the halving

Rather than treating the halving as a short-term trading point,
it is better to view it as a key benchmark for understanding Bitcoin's long-term value structure.

✔️ Gradual allocation
✔️ Avoid excessive leverage
✔️ Make judgments from a cyclical perspective

During the halving cycle, such strategies are usually more robust.

🎯 In summary

Bitcoin Halving
📌 It is not an event that guarantees a price increase.
📌 Instead, it is about understanding the core mechanism of Bitcoin's scarcity and long-term structure.