How Does the “Halving” Event Affect the Profitability of Bitcoin Mining?

The Bitcoin Halving reduces the block reward given to miners by 50 percent, directly cutting their revenue per block. This immediately decreases profitability unless the price of Bitcoin rises proportionally to compensate.

Less efficient miners may be forced to shut down their operations, leading to a temporary drop in the network's total hash rate. The long-term effect often depends on subsequent market price action.