Bitcoin's third halving cuts miner rewards to 6.25 coins amid pandemic stimulus

Bitcoin's third halving took place on Monday, reducing the reward for each new block from 12.5 to 6.25 bitcoin. The event was triggered automatically at block 630,000.

This halving comes in a very different environment from the previous one in 2016. Central banks have cut rates to near zero and launched large bond purchase programmes in response to the pandemic, while governments are spending heavily to support households and companies.

That backdrop has shaped the discussion around the event. Supporters argue that bitcoin's fixed supply schedule stands in contrast to rapid monetary expansion, and some well-known investors have publicly described it as a hedge against inflation. Sceptics note that bitcoin fell sharply alongside stocks in March, which undermines claims that it behaves as a safe haven.

For miners, the economics have changed overnight. Revenue per block has halved, and operators with older machines or expensive electricity may be forced to shut down, at least until the network's difficulty adjusts.

Price action in the days before the event was volatile, with a rally followed by a sharp drop. As with past halvings, any longer-term effect on the price will only become visible over months, and past patterns offer no guarantee.