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The Data Scientist

Bitcoin Halving

How Does Bitcoin Halving Affect Bitcoin’s Price?  

Bitcoin halving is one of the milestones in the journey of the most popular cryptocurrency in the world. It subtly restructures the market by throttling the creation of new BTC and subsequently released into circulation. Historically, this event has impacted Bitcoin’s price and continues to reinforce it going forward.  

In this article, we’ll discuss:  

  • Definition and significance of bitcoin halving
  • Its effect on changing dynamics of BTC price  
  • CoinEx exchange instructions for purchasing & trading Bitcoin as well as BTC/USDT spot trading  

Whether you are a crypto novice or want to explore deeper, this guide provides relevant informative insights.  

What Is Bitcoin Halving?  

Systematic Scheduled Reduction

Bitcoin halving is an algorithmically determined event that takes place roughly every 4 years. At such times block rewards granted to miners for adding blocks to existing chains gets reduced which limits upsurge in ownership of BTC posthalving.

Aim: Digital Scarcity  

Like gold, Bitocin was made finite hence would have an upper cap of 21 million coins. The pace at which coins are generate further slows down substantially by its design supporting long-term value preservation burst.

Timeline of halving events

  • 2012: Mining reward reduced from 50 BTC to 25 BTC
  • 2016: Dropped to 12.5 BTC
  • 2020: Cut to 6.25 BTC
  • 2024: Most recent halving brought it down to 3.125 BTC

Every halving makes it harder for new BTC to enter the market—shifting the supply curve in a predictable, transparent way.

How Bitcoin Halving Affect Bitcoin’s Price

Bitcoin halving doesn’t guarantee a price surge—but history shows it often leads to major market shifts. The reason lies in the fundamentals of supply and demand.

Reduced supply, steady demand

Each halving cuts the rate of new Bitcoin issuance in half. If demand remains constant—or increases—scarcity can push prices up. It’s simple economics: when a desirable asset becomes harder to get, it tends to become more valuable.

Historical impact

Let’s look at how BTC responded after previous halving events:

  • 2012: BTC rose from ~$12 to over $1,000 within a year
  • 2016: Price increased from ~$650 to nearly $20,000 by the end of 2017
  • 2020: BTC went from ~$8,800 to over $60,000 by April 2021

Each cycle brought new highs, although the timeframes and magnitudes varied.

A maturing market

The 2024 halving gave visible signs of a more mature ecosystem for Bitcoin. It is true that BTC got appreciated post event but the growth was much more moderate than earlier years. In a changed landscape, factors like institutional investment, Bitcoin ETFs, and global regulation now influence market dynamics.

However, the core principle remains: Bitcoin halving shapes supply—and supply affects price.

How to Buy Bitcoin

It’s never been easier to purchase Bitcoin — especially with exchanges like CoinEx that cater to the masses and offer a user-friendly experience.

Here’s a step-by-step guide to how you might go about taking your first steps into the world of BTC.

Why CoinEx Is a Smart Choice

CoinEx exchange is a world class trading platform trusted by millions around the world for its security, ease of use and overall trading experience. Established in 2017, CoinEx supports markets that cover BTC and USDT, and aims to let users trade with the power of their own.

Highlights of CoinEx:

  • BTC/USDT spot trading for real-time market prices
  • A seamless onboarding experience for new users
  • CoinEx financial account for earning passive income on your crypto holdings
  • 24/7 customer support and multilingual access

Buying Bitcoin on CoinEx via Spot Trading

CoinEx is an excellent and professional trading platform wherever you are looking to trade or even improve your portfolio.

Steps to Purchase Bitcoin on CoinEx through Spot Trading:

1. Create and Verify Your CoinEx Account

  • Go to the CoinEx exchange website and register.
  • Complete basic identity verification (KYC) for security purposes.
  • Activate 2FA for additional security.

2. Fund Your Account with USDT

  • To trade BTC, you must first acquire or deposit USDT (Tether), a stablecoin tied to the U.S. dollar.
  • Select your preferred payment method (e.g., bank transfer, credit card).
  • Utilize CoinEx’s fiat gateway partners to convert your local currency into USDT.
  • The funds will reflect in your Spot Wallet shortly.

3. Trade BTC/USDT in the Spot Market

  • Now, you can proceed to purchase Bitcoin directly.
  • Go to the “Markets” or “Exchange” section.
  • Look for the BTC/USDT trading pair.
  • Opt for a market order (instant purchase at the current price) or a limit order (purchase at your specified price).
  • Input the amount of BTC or USDT you wish to trade.
  • Confirm and execute the trade.
  • Your BTC will promptly appear in your CoinEx Spot Wallet.

4. (Optional) Generate Returns with the CoinEx Financial Account

   If you prefer holding over active trading, transfer your BTC to the CoinEx Financial Account. This feature allows you to:

  • Earn passive interest on your BTC holdings.
  • Enjoy flexible withdrawal options.
  • Benefit from secure asset management.

This method offers a practical approach to leverage your Bitcoin investments—particularly during halving cycles.

Conclusion

Reflecting on the Bigger Picture

Bitcoin halving refers to more than a technical update. It is a phenomenon that re-balances the whole crypto economy due to a decrease in the supply, determined how the price will behave in the future, and welcomes the considerate intervention. While no one can predict price outcomes with certainty, understanding the mechanics behind halving becomes a meaningful lens through which to view long-term decision-making.

And when you are prepared to take action, CoinEx Exchange shall be a composed, competent partner. With intuitive BTC/USDT spot trade, flexible tools like the CoinEx Financial Account and a trustworthy platform for users worldwide — having everything you need to get started with confidence.

Next Steps

  • Monitor Bitcoin halving cycles and global market trends
  • Open your free CoinEx account and explore BTC/USDT trading
  • Consider diversifying your holdings and earning passive income with CoinEx’s financial tools

Bitcoin is about much more than price—it’s a movement shaped by technology, scarcity, and community. Halving is a central chapter in that story. And with the right knowledge and tools, you can take part in that story on your own terms.