Charles Schwab Estimates Bitcoin's Fair Value at $95,000

Charles Schwab has estimated the fair value of Bitcoin (BTC) at $95,000. As of the 28th, BTC is trading at around $65,000, which is more than 30% lower than its fair value. Jim Faraholi, Director of Digital Currency Research and Strategy at Charles Schwab, proposed a model that finds the lower price of Bitcoin based on production costs. Top miners using the latest ASIC mining machines produce one Bitcoin at about $60,000, while lower-tier miners see production costs rise to $95,000 due to older equipment. Faraholi suggested that $60,000 is the lower observation range, and if it falls below this level, mining profitability will deteriorate. The 200-week moving average for BTC is currently positioned in the $60,000 to $62,000 range, emerging as a key observation point. According to Yahoo Finance, the average acquisition cost for holders of U.S. spot ETFs and ETPs is about $83,000, while the average for active investors is around $78,000. Both price ranges are higher than the current price, which could lead to selling pressure from investors in the loss zone if BTC approaches these levels. JPMorgan estimates the total production cost for listed mining companies at about $78,000, which differs from Charles Schwab's estimate.

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