The Bitcoin halving is crucial because it directly impacts the rate at which new bitcoins are created. Each halving event reduces the block reward received by miners by 50%, thereby slowing down the introduction of new bitcoins into circulation. This event has historically contributed to Bitcoin’s deflationary nature, increasing its scarcity, which, combined with rising demand, can lead to upward pressure on the price. For instance, in 2020, the mining reward was halved from 12. 5 BTC to 6. 25 BTC, and in the next halving, expected in 2024, it will drop further to 3. 125 BTC.