Bitcoin just experienced a major milestone in its short little lifespan. The reward for mining a block was just cut in half from 25 bitcoins to 12.5 bitcoins.This means that assuming a price of $650 per coin, going forward miners will make ~$8,125 per block they mine, compared to $16,250 before the halving.

Because of that, in a perfect market the BTC price would have simply doubled, to compensate for half as much bitcoin being rewarded. This logically would make sense, since the cost of mining isn’t changing at all, and without a doubling of price miners are instantly seeing their revenue cut in half.

But markets aren’t perfect. So the most logical conclusion is that any pricing effect from the halving has most likely already happened due to the market anticipating it, and is probably one of the main reason for the huge price increase over the past 6 months.