Analysis: The continuous expansion of the Bitcoin network and increasing demand will support Bitcoin prices to rise
PANews reported on May 13 that according to a chart released by Matrixport today, the security of the Bitcoin network is increasingly enhanced, mainly due to the rise in hash rate and the accumulation of Bitcoin by enterprises. As competition among miners intensifies, Bitcoin's hash rate continues to rise, with annual capital expenditure expected to reach $10 to $12 billion. This competition not only strengthens network security but also promotes diversification. Historical data shows that an increase in mining capital expenditure is usually associated with a rise in Bitcoin prices.
On the other hand, corporate buyers like MicroStrategy are acquiring and holding Bitcoin, effectively reducing the circulating supply. This dynamic suggests that Bitcoin prices may need to rise until the hash rate peaks, a situation that has not yet occurred. Overall, these factors indicate that the Bitcoin network is continuously expanding, and demand is growing, both of which ultimately support the rise in Bitcoin prices.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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