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Bitcoin Halving Day One: Block 630,000 Reduces Mining Rewards to 6.25 BTC as Network Holds Steady

The day after Bitcoin’s third halving, the cryptocurrency market appears surprisingly calm. Block 630,000 was mined on May 11, 2020 at 19:23 UTC by AntPool, triggering the long-anticipated reduction in block rewards from 12.5 BTC to 6.25 BTC. Despite months of speculation, Bitcoin’s price barely moved — trading at approximately $8,804 on May 12, essentially flat compared to the previous day.

TL;DR

  • Bitcoin’s third halving occurred at block 630,000, mined by AntPool on May 11, 2020
  • Block reward dropped from 12.5 BTC to 6.25 BTC — daily supply reduced from 1,800 to 900 BTC
  • BTC price held steady at ~$8,804, defying both bullish and bearish predictions
  • Ethereum traded at $189.31 (+0.2%), XRP at $0.195 (-0.41%)
  • Daily trading volumes remained robust at approximately $60 billion

The Halving Event: What Happened at Block 630,000

Bitcoin’s algorithmic supply schedule dictates that every 210,000 blocks — roughly every four years — the mining reward is cut in half. The first halving in 2012 reduced rewards from 50 to 25 BTC. The second, in 2016, brought it down to 12.5 BTC. Now, the third halving has brought the reward to 6.25 BTC per block.

The milestone block 630,000 was mined by AntPool, one of China’s largest mining operations. Interestingly, the penultimate block 629,999 was mined by f2pool, which embedded a message in the coinbase transaction paying homage to Satoshi Nakamoto’s famous genesis block text: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” It was a poetic nod to Bitcoin’s origins amid a global financial system once again under strain from the COVID-19 pandemic.

Market Reaction: Calm After the Storm

Leading up to the halving, analysts were divided into two camps. Optimists predicted a surge above $10,000, while pessimists warned of a collapse to $4,000. Neither materialized. According to FxPro’s analyst team, “The third halving has already been activated and nothing special has happened. Both optimists and pessimists were wrong.”

As of May 12, Bitcoin was trading at $8,687.50, representing a negligible decline of just 0.01%. The total cryptocurrency market capitalization stood at approximately $238.5 billion, with five of the top ten cryptocurrencies by market cap trading in positive territory.

The Supply Squeeze Begins

While the immediate price impact was muted, the halving’s implications for Bitcoin’s supply dynamics are profound. Daily Bitcoin production has dropped from 1,800 BTC to just 900 BTC — a reduction of approximately $7.9 million per day in newly mined supply at current prices. With approximately 18.37 million BTC already in circulation out of the 21 million cap, each halving brings the network closer to its finite limit.

FxPro analysts noted that the real changes would affect miners first: “The current reward given to miners will be 50% lower, while the cost of mining a Bitcoin has remained the same. Due to the decrease in profitability, miners will stop selling their mined Bitcoins, which will limit the issue of new coins in the market.”

Mining Economics Under Pressure

The halving puts immediate pressure on less efficient mining operations. With mining difficulty at approximately 16.1 trillion before the event, miners with older hardware or higher electricity costs face squeezed margins. Historical precedent from previous halvings suggests that a difficulty adjustment will follow as less efficient miners shut down, eventually stabilizing the network for remaining participants.

The Bitcoin network has processed over 630,000 blocks since its creation, and the self-adjusting difficulty mechanism ensures that blocks continue to arrive approximately every ten minutes regardless of total network hashrate — a testament to the protocol’s resilience.

Trading Volumes Signal Continued Interest

Despite the lack of dramatic price action, daily trading volumes were robust at approximately $60 billion, indicating sustained interest from both retail and institutional participants. Bitcoin’s market dominance remained strong at approximately $161.8 billion in market capitalization, significantly outpacing all other cryptocurrencies.

Why This Matters

Bitcoin’s third halving represents more than just a technical adjustment — it is a demonstration of the network’s ability to execute a predetermined monetary policy without central coordination. In an era of unprecedented central bank money printing in response to COVID-19, Bitcoin’s programmatic supply reduction stands in stark contrast. While the immediate price impact was muted, the long-term supply shock — combined with growing institutional interest — would ultimately prove significant. Within twelve months, Bitcoin would reach new all-time highs above $60,000.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.

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10 thoughts on “Bitcoin Halving Day One: Block 630,000 Reduces Mining Rewards to 6.25 BTC as Network Holds Steady”

    1. Sven Lindqvist

      block630k antpool mining the halving block felt anticlimactic because the whole event was priced in months ahead. efficient markets doing their thing

      1. Sven block 630,000 was priced in since March. the real chaos was f2pool embedding the Satoshi genesis message in block 629,999. poetic stuff

    2. daily supply went from 1800 to 900 btc. that supply shock takes time to hit the order books, wasnt gonna be instant

  1. antpool mined the halving block and the whole thing was anticlimactic. real moves come months later

  2. 900 btc per day instead of 1800. miners were selling roughly half to cover costs so the actual new sell pressure was minimal at first

    1. audit_pug_ miners were already running on thin margins after the march crash to 3.8k. the halving pushed a lot of older s9 rigs into unprofitability overnight

      1. miner_econ_ S9 rigs going dark overnight after the halving was brutal. march crash to 3.8k already thinned margins to zero then reward cuts in half. 2020 mining was survival mode

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