Schwab Estimates Bitcoin Fair Value at $95,000 Based on Mining Costs
Charles Schwab's Director of Digital Currencies Research and Strategy, Jim Ferraioli, estimates Bitcoin's fair value at $95,000. This estimate is based on a mining cost framework that identifies two key tiers: efficient miners and inefficient miners. Efficient miners produce Bitcoin at roughly $60,000 per coin, while inefficient miners face production costs around $95,000.
The $95,000 figure for inefficient miners serves as the near-term fair-value reference, typically accompanied by a small premium. Ferraioli's logic mirrors commodity pricing: if it costs $95,000 to mine, the market price should trade at or above that level to keep the network's broader mining base economically viable.
The $60,000 efficient-miner threshold functions as a fundamental support level, below which even the most cost-effective operations start feeling pain. This figure aligns with Bitcoin's 200-week moving average, currently sitting in the $60,000 to $62,000 range.