Schwab's Jim Ferraioli Pins Bitcoin Fair Value at $95,000

Charles Schwab's Head of Crypto Research, Jim Ferraioli, estimates Bitcoin's 'fair value' to be around $95,000. This valuation is based on the economics of Bitcoin production, specifically the cost of mining.

Ferraioli 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. He drew a comparison with traditional commodity markets, where producers generally operate on relatively thin margins.

Notably, the lower mining-cost estimate of around $60,000 represents a potential fundamental support zone for Bitcoin's price. This level also lines up with Bitcoin's 200-week moving average, which has recently been in the $60,000-$62,000 range.