[Digital Today reporter Chi-gyu Hwang] Concerns are growing about a price drop as Bitcoin (BTC) mining costs rise, Cointelegraph reported on Thursday.
Electricity costs to mine 1 bitcoin are estimated at $59,450, and total production costs at $74,300. The BTC price is currently above mining costs, but it could fall to $59,450 in the short term, Cointelegraph reported, citing crypto hedge fund Capriole Investments.
Bitcoin's hashrate has also fallen sharply. As it slips to mid-2025 levels, some miners are switching to AI operations. Network stability is being maintained through mining difficulty adjustments, but downward pressure on BTC prices could intensify in the short term, Cointelegraph said.
There is also analysis that, over the long term, Bitcoin's price is likely to converge toward its energy value of $120,950. Bitcoin tends to revert to its energy value after declines, described as a fair value based on production costs and network energy. Capriole Investments forecast that "after BTC forms a bottom between $74,300 and $59,450, it could rebound to around $120,000."
Chi-gyu Hwang
delight@d-today.co.kr