By Zac McClure, MBA · Reviewed by Arthur Teller, CPA · Updated on May 14, 2025 · Minute read
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Key Takeaways
- Bitcoin halving reduces new supply by 50% every four years, with the next event projected for mid-April 2028.
- Past halvings (e.g., April 2024) have historically influenced Bitcoin price dynamics and market speculation.
- Halvings enforce scarcity, capping total supply at 21 million BTC and aligning miner incentives with long-term value.
Next Bitcoin Halving: April 2028
The fifth Bitcoin halving is expected when block 1,050,000 is mined, likely between April 16–20, 2028. Key changes:
| Metric | Pre-Halving | Post-Halving |
|----------------------|-------------------|-------------------|
| Block Subsidy | 3.125 BTC | 1.5625 BTC |
| Daily Issuance | ~450 BTC | ~225 BTC |
| Annual Inflation | 0.79% | 0.39% |
👉 Track real-time halving countdowns
Why Bitcoin Halvings Matter
- Supply Control: Hard-coded to mimic commodity scarcity.
- Miner Incentives: Shifts revenue reliance from subsidies to transaction fees.
- Market Impact: Reduced sell pressure may tighten exchange liquidity.
Market Effects to Watch
- Miner Margins: High-cost operations may unplug if BTC price doesn’t offset lower rewards.
- Derivatives Pricing: Futures markets often price in halving effects months in advance.
- Tax Strategies: Holding BTC >12 months qualifies for lower capital gains rates (0–20%).
FAQ Section
How Accurate Is the April 2028 Estimate?
Block times vary slightly, but blockchain data narrows the window to ±4 days.
Does Halving Affect Transaction Fees?
No—fees are demand-driven. Miners may prioritize high-fee transactions as subsidies decline.
Will the Halving Trigger a Bull Market?
Historically, yes. Reduced supply often fuels long-term price appreciation, though short-term volatility persists.
Tax Considerations
- Short-Term: <12 months → Ordinary income rates (up to 37%).
- Long-Term: ≥12 months → Preferential rates (0–20%).
- Accounting Methods: HIFO (highest-cost-first) can minimize tax liability vs. FIFO.
👉 Optimize your crypto tax strategy
About the Authors
- Zac McClure: Ex-JPMorgan finance expert, Wharton MBA.
- Arthur Teller: CPA with 12 years at KPMG, specializing in crypto taxation.
Follow us for updates on Bitcoin halvings and tax-efficient investing.
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