 ▲ Bitcoin (BTC) mining |
As Bitcoin (BTC) has formed a strong support line around $60,000—its estimated mining cost—a new market phase is unfolding, with sophisticated derivatives trading by institutional investors filling the gap left by departing retail investors.
On February 10 (local time), U.S. business news network CNBC analyzed the reasons behind Bitcoin’s recent consolidation near the $70,000 level and its future outlook. Reporter MacKenzie Sigalos explained that Bitcoin’s stabilization around $60,000 is largely due to miners’ production costs acting as a bottom threshold. According to Sigalos, the cash cost of producing one Bitcoin stands at around $60,000, and if prices fall below that level, miners would struggle to sustain their operations.
The primary forces defending the market’s downside pressure are now miners and institutional investors. As long as prices remain above $60,000, miners are not compelled to aggressively sell their holdings to cover operating expenses, thereby reducing marginal selling pressure. Meanwhile, retail investors—once the market’s core participants—have largely migrated to prediction markets. Bitcoin trading is now increasingly centered on institutions, including spot ETF holders and corporate treasury departments.
Policy-driven optimism that once fueled the crypto market has somewhat faded. Federal Reserve Governor Christopher Waller noted that the U.S. cryptocurrency market structure bill, known as CLARITY, remains stalled in Congress. The optimistic sentiment that dominated markets following President Donald Trump’s election has gradually waned, and broad liquidation of risk assets has weakened upward momentum. Until the Trump administration announces more concrete digital asset policies, a wait-and-see stance is likely to persist.
Debate continues over Bitcoin’s role as a store of value. Bullish advocates argue that the U.S. dollar intentionally loses about 2% of its value annually, highlighting Bitcoin’s relative strength. In fact, spot Bitcoin ETFs recorded net inflows of $300 million last Friday, serving as an indicator that institutional buying demand remains robust.
Institutional strategies are becoming increasingly sophisticated, moving beyond simple spot holdings. According to reports from major asset managers, institutions are showing a growing preference for complex trading strategies, including leveraged bets and options market positions in addition to spot ETFs. The inflow of such refined institutional capital provides a foundation for Bitcoin to overcome short-term volatility and secure long-term stability.
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