The upward momentum of the leading cryptocurrency, Bitcoin, has once again been interrupted. Yesterday, after starting the new week above $65,000, $BTC fell to $63,000 due to a sharp sell-off on Asian markets related to memecoin trading and renewed concerns about the Fed raising interest rates.
As the $BTC price continues to fall sharply due to macroeconomic events, a prominent figure has determined Bitcoin's fair value to be $95,000.
Jim Ferraioli, Head of Crypto Research at Charles Schwab, a leading player in the cryptocurrency market, argued that the fair value of Bitcoin, regardless of its current market price, is around $95,000.
Ferraioli stated that this valuation is based on the economic indicators of Bitcoin mining, not short-term market sentiment.
In an interview with Coindesk, Ferraioli emphasized that one of the most important metrics for evaluating Bitcoin is its cost of production.
He noted that the most efficient miners produce one $BTC for around $60,000, while for less efficient miners this figure can rise to $95,000.
Comparing it to traditional commodity markets, Ferraioli noted that producers typically operate with relatively low margins, and said that for $BTC, production costs are also an important metric for assessing its fair value.
However, he added that the $95,000 level is not a target price for $BTC, but rather an estimate or forecast based on economic data.
The $60,000 Level Could Be a Strong Support Level for Bitcoin!
According to Ferraioli, the mining cost of approximately $60,000 represents an important fundamental support level for Bitcoin.
This level also coincides with Bitcoin's 200-week moving average, which has recently been in the $60,000–$62,000 range.
In conclusion, Ferraioli added that it is impossible to predict whether Bitcoin will reach the $95,000 mark within the next six months.
*This is not investment advice.
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