Analysis: The continuous expansion of the Bitcoin network and increasing demand will support the rise of Bitcoin prices

According to a chart released by Matrixport today, the security of the Bitcoin network is increasingly enhanced, mainly due to the increase in computing power and the accumulation of Bitcoin by enterprises. As competition among miners intensifies, the computing power of Bitcoin continues to rise, with an expected annual capital expenditure of $10 to $12 billion. This competition not only strengthens network security, but also promotes diversified development. Historical data shows that the increase in mining capital expenditures is usually associated with the rise in Bitcoin prices. On the other hand, corporate buyers like MicroStrategy are acquiring and holding Bitcoin, effectively reducing the circulating supply. This dynamic indicates that the price of Bitcoin may need to rise until the computing power reaches its peak, which has not yet occurred. Overall, these factors indicate that the Bitcoin network is constantly expanding and demand is growing, both of which ultimately support the rise in Bitcoin prices.