Bitcoin Halving — What Canadian Investors Need to Know

Approximately every four years (every 210,000 blocks), the reward that Bitcoin miners receive for processing transactions is cut in half. This is coded into Bitcoin’s protocol and cannot be changed.

Supply shock.The halving cuts the rate of new Bitcoin entering circulation in half. If demand stays constant (or grows) while supply growth drops, price typically rises.

Scarcity reinforcement. Every halving makes Bitcoin’s fixed 21 million supply cap more significant. Fewer new Bitcoin being created means each existing Bitcoin is relatively more scarce.

Historical price pattern: Each halving has historically been followed by a significant price increase in the 12-18 months after the event. Past performance doesn’t guarantee future results, but the pattern has repeated three times.

The most recent Bitcoin halving occurred in April 2024, reducing the block reward from 6.25 BTC to 3.125 BTC.

Following the 2024 halving, Bitcoin reached new all-time highs in Canadian dollars — consistent with historical halving patterns.

Dollar-cost averaging becomes more powerful. Buying Bitcoin regularly through halving cycles has historically been one of the best-performing strategies.

Long-term supply reduction is built in. Bitcoin’s scarcity increases mechanically over time — no decision required.

The next halving is expected around 2028, when the reward drops to ~1.5625 BTC.