Schwab Expert Sees Fair Value in Bitcoin at $95,000

Charles Schwab's Head of Crypto Research, Jim Ferraioli, has weighed in on Bitcoin's current market value. According to him, Bitcoin's 'fair value' could be closer to $95,000 than its current price.

Ferraioli based his valuation on Bitcoin's mining economics rather than short-term market sentiment. He explained that the most efficient Bitcoin miners currently produce BTC at a cost of around $60,000, while less efficient miners are closer to $95,000.

This comparison with traditional commodity markets suggests that producers generally operate on relatively thin margins, making production costs a useful benchmark for estimating fair value.

Ferraioli noted that the lower mining-cost estimate represents a potential fundamental support zone and aligns with Bitcoin's 200-week moving average, which has recently been around $60,000, $62,000 range.