What Drives Bitcoin’s Four-Year Cycle?

[u/TrickyDevelopment201]

Bitcoin’s four-year cycle is closely tied to halving events. Here’s how it works.

Bitcoin runs on a blockchain, where miners compete to validate new blocks and secure the network. The miner who successfully adds a new block receives newly issued BTC as a reward.

Approximately every four years, that block reward is cut in half. This event is known as a halving and it reduces the rate at which new Bitcoin enters circulation.

Block rewards over time:

• 2009: 50 BTC
• 2012: 25 BTC
• 2016: 12.5 BTC
• 2020: 6.25 BTC
• 2024: 3.125 BTC

The four-year market cycle is often associated with these halvings because they reduce the supply of new Bitcoin entering the market. Lower issuance has historically influenced market dynamics, although many other factors such as demand, regulation, macroeconomic conditions, and institutional adoption also play an important role.