Miners lose 50% of their transaction processing incentives with each halving. Nonetheless, each halving slows the rate at which new Bitcoins are created, increasing the scarcity of the currency. The demand-supply dynamics enter turbulent air at this point.
When the supply of fiat currency (conventional paper currency) falls, the demand fluctuates, and the price reflects the changes. Furthermore, the Bitcoin halving generates a 'deflationary system,' meaning that the decrease in supply leads to an increase in demand, and prices rise.
According to the figures, Bitcoin's inflation rate was 50 percent before the first halving in 2012, after which it decreased to 12 percent. After the next halving in 2016, it fell to 4-5 percent, and after the 2020 halving, it was 1.2 percent in 2021.