Bitcoin’s big shift has cut rewards and shifted the mining landscape. 

Bitcoin has undergone its fourth “halving” event, effectively reducing the mining rewards for validating transactions on its blockchain. 

The adjustment is likely to influence the digital currency’s operational and economic landscape, though change has been slow so far. 

The halving, a pre-scheduled event occurring roughly every four years, reduces the rewards miners receive for adding new blocks to the blockchain. 

Previously set at 6.25 bitcoins per block, the reward now stands at 3.125 bitcoins. 

This mechanism, embedded in Bitcoin’s code by its creator Satoshi Nakamoto, aims to prevent inflation and ensure the cryptocurrency remains a deflationary asset. 

According to Nakamoto's vision, the total supply of Bitcoin will never exceed 21 million coins.

Despite the substantial reduction in mining rewards, the immediate impact on Bitcoin’s market price has been minimal, with the cryptocurrency trading only slightly higher after the event. 

This modest increase suggests that the halving was largely anticipated by the market, aligning with analysts' expectations that such events are typically priced in.

Some analysts say that the cryptocurrency's near-term prospects will be influenced more by macroeconomic factors than by changes in its mining algorithm.

The reduction in block rewards is expected to have a profound impact on Bitcoin mining operations, which are known for their high energy consumption. 

Large mining companies like Marathon Digital Holdings and Riot Platforms might face challenges in maintaining profitability unless Bitcoin's price continues to rise. 

JPMorgan analysts suggest that this could lead to further consolidation in the industry, with larger, publicly-traded mining firms potentially benefiting from increased market share and access to capital for investing in more efficient mining equipment.

As the industry adjusts to the new reward structure, the focus now turns to the next halving event scheduled for 2028, which will further reduce the reward to 1.5625 bitcoins per block. This ongoing reduction is expected to eventually shift miners’ reliance from block rewards to transaction fees as a source of revenue.