Crypto Basics

What is Bitcoin Halving and How Does it Impact the Market?

Learn everything about Bitcoin halving and its impact on the crypto market, in this descriptive guide.
Token Metrics Team
7 Minutes
MIN

Over the years, Bitcoin has gained significant popularity and adoption as a means of payment and investment, with a growing number of merchants accepting it as a form of payment and an increasing number of investors buying and holding it as a store of value.

What is Bitcoin Halving?

Bitcoin Halving is a highly anticipated event that takes place every four years in the world of cryptocurrency. It is a pre-programmed adjustment in the Bitcoin blockchain protocol that reduces the mining rewards by 50% for each new block added to the network.

The purpose of the halving is to ensure that the rate of Bitcoin inflation remains under control, and that the total supply of Bitcoin never exceeds 21 million.

The upcoming Bitcoin Halving event has generated a lot of buzz and interest among investors and traders, as it is expected to have a significant impact on the price and overall market sentiment. In this blog post, we will dive deep into the topic of Bitcoin Halving, discussing what it is, how it works, and what to expect from the upcoming halving event.

When was the first Bitcoin Halving?

The first Bitcoin halving occurred on November 28, 2012, approximately four years after the cryptocurrency's launch. At that time, the mining reward for each block added to the Bitcoin blockchain was reduced from 50 BTC to 25 BTC.

This event marked a significant milestone in the Bitcoin ecosystem and signaled the beginning of a new era in the cryptocurrency's monetary policy. Since then, there have been two additional Bitcoin halvings, one in 2016 and another in 2020, with the mining reward reduced to 12.5 BTC and 6.25 BTC, respectively.

The next Bitcoin halving is expected to occur in 2024, at which point the mining reward will be further reduced to 3.125 BTC per block.

Bitcoin Halving Chart

A Bitcoin halving chart is a graphical representation that shows the historical and projected future dates of Bitcoin halvings, as well as the corresponding changes in the Bitcoin mining reward. 

“The chart typically includes a timeline of Bitcoin's history, starting with its launch in 2009, and marks the dates of each halving event as vertical lines. The halving events are also accompanied by a reduction in the Bitcoin mining reward, which is depicted on the chart as a downward sloping curve.”

Bitcoin Halving Chart

Bitcoin halving charts are used by investors, traders, and analysts to track the impact of halvings on the Bitcoin price and market sentiment. These charts can help in predicting potential price movements based on historical trends, as well as analyzing the impact of halvings on the overall supply and demand dynamics of Bitcoin.

Several online platforms offer Bitcoin halving charts that are frequently updated with the latest data and projections. These charts typically include additional features such as zooming, filtering, and customization options to allow users to analyze the data in more detail.

Overall, Bitcoin halving charts are a useful tool for anyone interested in understanding the impact of halving events on the Bitcoin ecosystem.

How does Bitcoin Halving work?

Bitcoin halving is a pre-programmed adjustment to the Bitcoin blockchain protocol that occurs approximately every four years. The process is designed to reduce the amount of new Bitcoin created with each block added to the blockchain by 50%.

The halving is a critical aspect of Bitcoin's monetary policy and serves to control the rate of inflation in the Bitcoin ecosystem.

Bitcoin halving works by reducing the mining rewards that Bitcoin miners receive for adding new blocks to the blockchain. When Bitcoin was first launched in 2009, the mining reward was set at 50 BTC per block.

After the first halving in 2012, the mining reward was reduced to 25 BTC per block. The second halving in 2016 further reduced the reward to 12.5 BTC per block, and the most recent halving in 2020 brought the reward down to 6.25 BTC per block.

The process of Bitcoin halving is automatic and built into the Bitcoin protocol, with a predetermined schedule that reduces the mining reward by half after every 210,000 blocks are added to the blockchain.

This cycle continues until the total supply of Bitcoin reaches 21 million, which is the maximum limit set by the protocol. Once the limit is reached, no new Bitcoins will be created, and miners will rely solely on transaction fees for their rewards.

The impact of Bitcoin halving on the mining industry and overall market sentiment can be significant. As the mining reward is reduced, it becomes more difficult and expensive for miners to earn a profit, leading to a potential decrease in the supply of new Bitcoins and an increase in their price.

Additionally, the halving can create uncertainty and volatility in the Bitcoin market, as investors and traders adjust their strategies based on the changing supply and demand dynamics.

Will BTC price go up or down after halving?

Predicting the exact direction of Bitcoin price movement after halving is difficult, as it is subject to various factors such as market sentiment, demand and supply, and overall adoption of the cryptocurrency. However, based on historical trends, many analysts and experts believe that Bitcoin price tends to go up after halving.

One reason for this belief is the reduction in the rate of new Bitcoin supply. With each halving event, the number of new Bitcoins entering the market decreases, creating a supply shock that can drive the price up due to increased scarcity.

Additionally, the halving can lead to a decrease in the profitability of Bitcoin mining, which could result in some miners leaving the network, reducing the overall supply of new Bitcoin even further.

However, it is also important to note that the impact of halving on Bitcoin price may not be immediate, and the price may experience fluctuations and volatility in the short term.

It is also worth considering that Bitcoin's price is influenced by a range of other factors beyond halving, such as macroeconomic conditions, regulatory developments, and investor sentiment.

Also Read - Is Bitcoin Dead? - Complete Analysis for BTC Investors

Impact of Halving on Bitcoin Miners

Bitcoin halving has a significant impact on Bitcoin miners, as it reduces the reward they receive for adding new blocks to the blockchain. With each halving event, the mining reward is reduced by half, which means that miners must work harder and invest more resources to earn the same amount of Bitcoin.

The reduction in mining rewards can lead to a decrease in profitability for miners, making it more challenging for them to cover their costs and remain profitable. This can lead to smaller miners being pushed out of the market, leaving only the most efficient and well-capitalized miners in the game.

However, there are some ways that miners can adapt to the changing market conditions after halving. For example, miners can lower their operating costs by upgrading their equipment to more efficient models, moving to locations with lower energy costs, or forming mining pools to share resources and reduce competition.

Additionally, as the price of Bitcoin tends to increase after halving, miners may be able to offset the reduced mining rewards by earning more from transaction fees and appreciation in the value of their Bitcoin holdings.

Overall, the impact of halving on Bitcoin miners depends on several factors, such as the cost of mining, the price of Bitcoin, and the level of competition in the market.

While the reduction in mining rewards can create challenges for miners, it is also an essential aspect of Bitcoin's monetary policy, which ensures the controlled release of new Bitcoin into the market and the maintenance of its value over time.

The Bottom Line

In conclusion, Bitcoin halving is a critical aspect of the Bitcoin protocol that serves to control the rate of inflation in the Bitcoin ecosystem.

The process of halving reduces the mining rewards that Bitcoin miners receive for adding new blocks to the blockchain by 50% every four years, until the maximum supply of 21 million Bitcoins is reached.

While the impact of halving on the Bitcoin market and miners can be significant, it is also an essential aspect of Bitcoin's monetary policy, ensuring the controlled release of new Bitcoin into the market and the maintenance of its value over time.

As Bitcoin continues to gain wider adoption and recognition as a legitimate asset, the impact of halving events is likely to become more pronounced, making it an important consideration for investors, traders, and Bitcoin enthusiasts alike.

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What Is the MCP Server? Exploring Token Metrics’ Model Context Protocol API and Integrations

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In today’s fast-moving crypto market, one truth has become clear: data is not enough—intelligence is everything. Traders, developers, and crypto-native builders are overwhelmed with fragmented tools, inconsistent APIs, and incompatible formats. That's where the Token Metrics Crypto MCP Server changes the game.

In this article, we’ll explore what the MCP Server is, how Token Metrics MCP services work, and how this innovative platform is integrated with leading tools like OpenAI Agents SDK, Windsurf, Cursor AI, Zapier, QuickNode, and Cline. If you’re building in crypto, this guide will show you how to unify your stack, streamline development, and unlock the full power of AI-powered crypto analytics.

What Is the Token Metrics MCP Server?

The MCP Server stands for Model Context Protocol—a lightweight gateway designed by Token Metrics to solve one of the crypto industry’s most persistent problems: tool fragmentation.

From ChatGPT-style agents to desktop dashboards, IDE assistants, and CLI tools, every crypto developer or trader juggles multiple keys, schemas, and inconsistent API responses. The MCP Server solves this by acting as a single interface that translates requests from any client into one canonical crypto data schema—all while sharing the same API key and authentication.

In Simple Terms:

  • Paste your key once.
  • Every tool—OpenAI, Claude, Windsurf, Cursor, Cline—gets access to the same data.
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Why Use the MCP Server Instead of Separate APIs?

Here’s why Token Metrics MCP is a breakthrough:

This is more than a convenience—it’s a productivity multiplier for any serious crypto developer or trader.

Token Metrics API: Intelligence Beyond Price Charts

At the core of the MCP Server lies the Token Metrics Crypto API—an industry-leading data source used by funds, traders, DAOs, and builders worldwide.

Key Features:

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  • Bullish/Bearish Signals: Predictive entries and exits, generated using real-time market conditions.
  • Quant Metrics: Sharpe Ratio, Value at Risk, Volatility Scores, and more.
  • Support & Resistance Levels: Updated dynamically as markets move.
  • AI Sentiment Analysis: Tracks social, on-chain, and momentum signals across narratives.

The API covers 6,000+ tokens across chains, sectors, and market caps—providing both raw and AI-processed data.

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Here’s how MCP connects seamlessly with today’s top tools:

1. OpenAI Agents SDK And Token Metrics MCP

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Windsurf is an automation-first IDE that allows instant deployment of crypto dashboards. Using MCP, Token Metrics powers:

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Altcoin Season Delayed? 2025 Crypto Market Cap Trends Explained

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In 2025, much of the altcoin market remains subdued. Prices for many tokens are still down more than 90% from their all-time highs. Despite sporadic rallies and renewed interest in certain sectors like meme coins or AI, a broader altcoin season has yet to materialize. The question facing many crypto investors now is: why?

In this analysis, we explore the macro and structural reasons for altcoin underperformance, unpack the liquidity bottleneck, and discuss what might change this narrative going forward.

The Data: Altcoins Still Deep in the Red

By mid-2025, most altcoins remain far below their PEAQ valuations from the last cycle. While Bitcoin and a few select large caps have recovered or even set new highs, the broader altcoin ecosystem continues to lag. This decoupling is not new—it happens every cycle—but the magnitude and persistence this time are notable.

A combination of market structure changes and supply-side dynamics are likely responsible.

Why Liquidity Hasn’t Returned

The most critical variable is liquidity. In previous bull runs, altcoin rallies were fueled by large inflows of new capital. This fresh money—often speculative—moved quickly through different sectors, inflating valuations across the board.

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Token Supply Has Exploded

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This oversupply of assets creates a fragmented market where attention and liquidity are spread thin. As a result, the days of altcoin beta—when nearly every token would rally simply because “the market is up”—may be over.

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Sector Rotation Dominates

Rather than broad-based rallies, the market is experiencing sectoral rotations. Capital flows aggressively between narratives: from meme coins to AI tokens, then to DePIN, and perhaps next to RWAs or perpetual DEXs.

This “hot potato” behavior means even when a sector performs, it's often short-lived. Many traders chase the next hype wave rather than allocating with conviction. The result is volatility without trend sustainability, and thin liquidity across most altcoins.

Institutions Are Still Focused on Bitcoin

Another reason altcoins lag is that institutional interest remains centered on Bitcoin—and to a lesser extent, Ethereum. This is particularly true in 2025, as the regulatory landscape slowly becomes more defined and risk appetite stays muted.

Bitcoin continues to benefit from a macro narrative that positions it as a hedge against inflation, fiat instability, and geopolitical risk. With potential for further escalation in global conflicts and economic uncertainty, BTC is often the first and only crypto asset to attract serious inflows.

Until altcoins can offer a comparable use case or risk-adjusted return, institutional capital will likely remain concentrated in BTC.

What Needs to Change

There are several potential catalysts that could eventually bring altcoins back into focus. These include:

  • Improved Liquidity: More capital entering crypto markets through new ETFs, stablecoin infrastructure, or sovereign adoption.
  • Macro Stabilization: A return to risk-on environments globally could expand investor appetite for high-beta crypto assets.
  • Real Usage: Tokens that can demonstrate strong on-chain revenue, user growth, or ecosystem traction may attract sustained demand.
  • Narrative Shifts: New technological breakthroughs or mass adoption events (e.g., consumer applications, financial integrations) could lead to renewed enthusiasm.
  • Token Burn and Scarcity: Projects that reduce supply through burns or buybacks may outperform in a low-liquidity world.

Avoiding the “Musical Chairs” Risk

An important takeaway from the current market environment is the growing risk of holding underperforming assets too long. The metaphor of “musical chairs” applies here—when the music stops, not all tokens will have a place.

Just as the dot-com bubble led to a major culling of internet companies, the crypto market may be undergoing a similar filtering process. Those with product-market fit, sustainable economics, and user adoption will likely survive. Others may not recover.

Bitcoin as the Benchmark

Bitcoin has become the benchmark asset for crypto, both in terms of performance and narrative. It remains the asset most closely tied to global macro conditions and institutional flows.

Its relative strength has made it a measuring stick for evaluating the rest of the market. Many altcoins are now being judged not just in fiat terms, but in BTC-relative performance. If they can’t outperform Bitcoin on a risk-adjusted basis, they may struggle to justify their place in portfolios.

Long-Term Outlook: Selective Optimism

Despite short-term underperformance, we remain open to altcoin opportunities—but with greater caution and selectivity. The current environment favors a “barbell strategy”: holding a core position in Bitcoin while selectively allocating to altcoins with verifiable traction.

This is no longer a market where every token rides the same wave. Success in 2025 likely comes from identifying the few that can break out due to clear product value, strong teams, and real-world adoption.

Conclusion

The altcoin market in 2025 reflects a maturing, more fragmented crypto ecosystem. The free liquidity and speculative exuberance of previous cycles have given way to a more competitive, filtered environment.

For investors and builders alike, this isn’t a reason to despair—but a reason to be more focused. As the market resets, those who adapt their frameworks to the new reality may find long-term success. The next wave of winners may already be building—quietly, under the surface.

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That’s why we’re excited to announce the Token Metrics $200K Grant Program — a bold initiative to empower crypto innovators at any stage.

💾 Why We’re Launching This Grant

Crypto innovation has always thrived on open experimentation. But we know firsthand how tough it can be to go from idea to product. You need the right tools, data, support, and—yes—capital.

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then this program is for you.

🎁 What You Get

Here’s what each selected project receives:

✅ Up to $5,000 in Grants

No strings attached. We’re offering non-dilutive microgrants to help you push your project forward—whether it's hosting costs, engineering hours, or marketing.

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You’ll join a thriving ecosystem of developers, analysts, and AI tinkerers who are all solving similar challenges. Share feedback, collaborate, and level up together.

🛠 Who Can Apply?

The grant is open to all stages of projects:

  • 💡 Idea Stage – Have an idea and a plan to build? You’re eligible.
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  • 🚀 Launched Product – Need support to scale? We’re here for it.
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No matter your background, location, or company size—if you’re building something innovative at the intersection of crypto + AI, we want to hear from you.

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The possibilities are vast. Some ideas we’d love to see:

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Want to create something we haven’t thought of? Even better.

📆 Timeline & Application

The $200K will be distributed over multiple rounds across 2025, with applications reviewed on a rolling basis.

Apply once and you’ll be considered for current and upcoming rounds.

Deadline: First batch review begins July 15, 2025.

👉 Apply here now

đŸ€ Why Build with Token Metrics?

At Token Metrics, we believe the future of investing is intelligent, data-driven, and decentralized. That’s why we’re opening up our core infrastructure—so you can build tools that make crypto smarter for everyone.

We’ve spent years perfecting our AI models, data pipelines, and trading signals. Now, we’re putting that power in your hands.

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The next breakthrough tool might be yours. All it takes is one application.

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Let’s build the future of crypto—together.‍

The Token Metrics Team

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