Schwab Strategist Says Bitcoin's $60,000 Mining Cost Could Be the Price Floor — Here's What That Means
(120 days ago) · 1 source · Summarized by CryptoBipto
A strategist from Charles Schwab has suggested that Bitcoin's estimated $60,000 mining cost could serve as a natural price floor for the current market cycle. The argument is based on the idea that miners would stop producing Bitcoin if prices fell below their break-even cost, reducing supply and supporting the price.
WHY IT MATTERS
Think of Bitcoin mining like gold mining: there's a real cost to dig it out of the ground. If gold costs $1,500 per ounce to mine, miners won't bother if the price drops to $1,200 — they'd lose money on every ounce. The same logic applies to Bitcoin. A Schwab strategist is saying that because it costs about $60,000 to mine one Bitcoin right now, the price is unlikely to stay below that level for long, since miners would simply stop mining, reducing the supply of new Bitcoin and pushing the price back up. This is significant because a major Wall Street firm is using crypto-native data to make price predictions, showing how seriously traditional finance now takes Bitcoin.
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