Bitcoin Halving Explained: Why It Still Drives BTC Price Pump

History of Bitcoin Halving Events

1. First Halving (2012)

• Block reward: decreased from 50 BTC to 25 BTC.
• BTC price before: approximately USD $12.
• The price of BTC reached $1,000 within a year.

The 2012 Halving introduced the concept of programmed scarcity to a broader audience. When the mining rewards were halved, the supply drastically decreased, triggering the first significant bull market for Bitcoin.

2. Second Halving (2016)

• Block reward: reduced from 25 BTC to 12.5 BTC.
• BTC price before: USD $650.
• The price of BTC soared to nearly $20,000 in 2017.

This halving cycle has solidified Bitcoin's reputation as "digital gold." The participation of institutions and retail investors has surged, and the market capitalization of the cryptocurrency market has exceeded $500 billion for the first time.

3. Third Halving (2020)

• Block reward: decreased from 12.5 BTC to 6.25 BTC.
• BTC price before: USD $8,500.
• The BTC price rose to a historic high of $69,000 by 2021.

This halving cycle coincides with unprecedented global monetary stimulus measures, accelerating Bitcoin's role as an inflation hedge. It also marks the rise of decentralized finance (DeFi) and institutional adoption.

4. Fourth Halving (2024)

• Block reward: decreased from 6.25 BTC to 3.125 BTC.
• BTC price before: USD $63,000 (approximately AUD $97,000).
• BTC Price Prediction: By 2025, the trading price of Bitcoin is expected to exceed AUD $185,000, as analysts anticipate further price rises with liquidity shifting towards cryptocurrency ETFs and AI-driven funds.

The market impact of past Halvings

Every Halving has historically triggered supply shocks. As the issuance of new BTC decreases and scarcity increases, prices rise when demand remains constant or increases.

Key patterns observed:

• On average, 12-18 months after each Halving, BTC will reach a new all-time high.
• As media coverage and FOMO increase, retail participation has peaked.
• Institutional entry has solidified market confidence during the mid-cycle consolidation.

These patterns indicate that the impact of the 2024 Halving is still unfolding, and significant pump momentum is expected in the next 12 months.

What is the expectation for the next Halving?

The next Halving is expected to take place in 2028, reducing the reward from 3.125 BTC to 1.5625 BTC. Analysts predict that this could push Bitcoin's valuation to over 400,000 AUD, provided there is sustained institutional inflow, ETF growth, and broader macroeconomic support. This event may also reshape the miner economy, forcing small miners to merge or innovate, further decentralizing the network.

Why is the Bitcoin Halving still important in 2025?

Despite Bitcoin's maturity, the Halving event remains central to its monetary design. Each reduction reinforces scarcity—this stands in stark contrast to inflationary fiat currencies like the Australian dollar.

For Australian investors, Halving highlights the reasons why Bitcoin serves as a long-term hedge against currency devaluation and traditional financial risks. It also serves as a reminder that accumulating before and after Halving events typically yields the best risk-adjusted returns.

Make money from Bitcoin Halving

• Buy and hold strategy:Accumulate Bitcoin before the next Halving to benefit from the potential pump afterward.
• Market Volatility:Trade the BTC/AUD pair using Gate.com’s advanced tools during the Halving-related volatility peaks.
• Earn Returns:Stake Bitcoin in liquidity pools or lend it out through trusted partners to generate passive income.
• Diversifying with altcoins:As Bitcoin takes the lead after the Halving, profits often shift to other coins—this is another opportunity for traders.

Gate.com provides seamless access to these opportunities, with deep liquidity, security, and professional-grade analytics.

Conclusion

Bitcoin Halving has consistently proven to be a catalyst for widespread market pump and long-term value enhancement. From the mild beginnings in 2012 to the multi-trillion dollar market in 2025, this pattern remains: scarcity drives value.

For Australian investors, the message is clear – accumulating Bitcoin before the next Halving could be a strategic move to create wealth. Whether you are a novice trader or an experienced investor, Gate.com provides the ideal platform to trade, accumulate, and grow alongside Bitcoin.

Frequently Asked Questions

1. What is Bitcoin Halving?
   Bitcoin Halving is an event where miner rewards are reduced by 50%, thereby decreasing the supply of new BTC and increasing scarcity.

2. How often does Halving occur?
   Approximately every 210,000 blocks, or about every four years.

3. Does every Halving lead to a price pump?
   Historically, yes— the last three Halvings led to major bull markets within 12 to 18 months.

4. When is the next Bitcoin Halving?
   It is expected that around April 2028, the reward will be reduced from 3.125 BTC to 1.5625 BTC.

5. How can I profit from Bitcoin Halving?
   Invest in advance, trade price fluctuations, or stake your BTC for returns — all of these can be easily achieved through Gate.com.