Bitcoin is about to hit an event called the halving — and it may spark a huge rally

The supply of new bitcoin is about to get effectively cut in half in an event called the halving. Some experts believe it could help lead to big gains in the digital currency. (Dan Kitwood/Getty Images)

A big event is about to happen in the world of bitcoin: It's called the halving — and some experts believe it will turbocharge a rally in the digital currency.

In broad terms, the halving effectively reduces the supply of new bitcoins. And that presumably should lead to higher prices. It's the scarcity principle. The fewer bitcoins that get mined, the more valuable bitcoin becomes.