In contrast, the production cost of a bitcoin tends to move toward its price because the price acts as a ceiling and competition drives the production cost to the ceiling by changing the difficulty.
Thus, the price of a commodity may ultimately depend on the production cost, but the price of a bitcoin does not. Instead, the production cost of a bitcoin ultimately depends on its price.
bitcoin production costs have a flaw and a ceiling.. that moves over time dependant on competition
the MARKET PRICE moves within that window. INBETWEEN the floor and ceiling
yes if the market stays up in the higher half of the window long enough then the competition sustainability also moves up quicker.. or if the market price does not move into the upper half then the floor ceiling window moves slowly based on the halving cycle alone
i know people get obsessed with only looking at market data and only want to point finger at the market data as the sole function of bitcoin. but there are more elements and more fundamentals outside of the market data that actuall cause the price discovery
after all if every man and his dog could cpu mine bitcoin at an average of 1cent per btc cost. do you really think the markets will be at $28k speculation today.. nope every man and his dog would be selling down the market to correct the price down to cpu mining cost with only a small profit margin of speculation.