Bitcoin Halving Explained: What It Is and Why It Matters for Cycles

The Bitcoin halving reduces the new supply issued to miners every four years. It is a key part of the Bitcoin supply schedule and a major market narrative.

What is the halving?

• Block reward is cut in half
• New supply slows down
• The event happens every 210,000 blocks

Why the halving matters

• It changes supply growth
• It can influence market cycles
• It attracts long-term investors

Common myths

• Halving does not guarantee price increases
• Timing and macro conditions still matter
• Volatility usually rises around the event

How traders approach it

• Avoid all-in predictions
• Use strict risk limits
• Wait for trend confirmation

A conservative plan

• Keep position size small
• Use DCA for long-term exposure
• Hold cash for volatility spikes

Next Steps

1. Crypto Trading vs Investing - Choose your time horizon
2. Spot vs Futures Crypto Trading - Understand leverage risk
3. Risk Management Guide - Protect capital

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About the Author: Pip Campus Market Analysis Team - Focused on macro drivers.

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