Schwab: Bitcoin's True Value Could Be Over $95,000 Amid Market Volatility

A sharp sell-off in Asian markets related to chip trading and renewed fears about a Fed interest rate hike sent Bitcoin plummeting from $65,000 to $63,000 on Monday.

Jim Ferraioli, Head of Crypto Research at Charles Schwab, believes the fair value of Bitcoin is around $95,000, based on its production costs rather than short-term market sentiment.

Ferraioli explained that efficient miners produce one BTC at a cost of approximately $60,000, while lower-efficiency miners incur costs as high as $95,000. He compared this to traditional commodity markets where producers operate with relatively low profit margins.

The $95,000 level is not considered a price target for Bitcoin, but rather an estimate based on economic data, according to Ferraioli.