Bitcoin celebrates 12 years since first halving milestone

Bitcoin (CRYPTO:BTC) marks 12 years since its first halving event on November 28, 2012, which reduced block rewards from 50 BTC to 25 BTC.

Over three subsequent halvings, block rewards have decreased to 3.125 BTC, reflecting the cryptocurrency's limited supply mechanism.

As of November 27, Bitcoin’s circulating supply stands at 19.8 million, leaving 1.2 million BTC to be mined before reaching the fixed cap of 21 million coins.

Designed to ensure scarcity, this principle has driven Bitcoin’s market dynamics.

However, mining difficulty has increased significantly, crossing 100 trillion for the first time on November 5, requiring miners to adapt.

Bitcoin’s price currently trades at $95,364, up 154% over the past year, approaching its all-time high of $99,600 recorded on November 22.

The fourth halving event in April 2024 contributed to a 45% price increase, reinforcing the importance of halving cycles in shaping market trends.

Despite rising mining challenges, including lower block rewards and increasing costs, miners remain active.

“The Bitcoin mining industry has faced significant challenges this year, with revenues and hash prices declining,” according to an October report by CoinShares.

Major mining firms like Marathon Digital have sold substantial amounts of mined Bitcoin to maintain operations, while exploring alternative strategies to enhance efficiency.

Some companies, like El Salvador, are advancing sustainable mining practices using geothermal energy.

The anniversary highlights Bitcoin’s evolution and resilience, showcasing its ability to adapt to market and technological changes.

With less than 6% of Bitcoin left to mine, the milestone underscores the cryptocurrency's scarcity-driven model and its influence on the broader market.

Bitcoin's journey since its first halving illustrates the enduring impact of its deflationary mechanism.

At the time of reporting, the Bitcoin price was $96,700.33.