In the tumultuous landscape of early 2026, the cryptocurrency sector has experienced a rollercoaster of events, culminating in a dramatic downturn that saw Bitcoin's value plummet to an astonishing low of approximately $60,000 on February 5th. This sudden drop, often referred to as a "flash crash," was the result of a confluence of factors, including a sharp decline in leveraged trading, a temporary waning of enthusiasm surrounding AI in the crypto space, and growing concerns regarding a potentially aggressive stance from the Federal Reserve.
Yet, demonstrating its renowned resilience, Bitcoin rebounded swiftly, climbing back towards the $70,000 mark within just a few days. As individual investors maintain a cautious outlook, Bill Miller, a senior portfolio manager at Miller Value Partners, confidently asserts that the $60,000 threshold represented not merely a momentary dip but rather a significant market bottom.
Speaking with CNBC, Miller elaborated on three key factors that underpin his belief that Bitcoin reached its lowest point at this price.
The Cost of Bitcoin Mining
Miller emphasizes that one of the most critical reasons supporting the notion of a $60,000 bottom is the inherent cost involved in mining Bitcoin. For the first time during this market cycle, Bitcoin’s trading price aligned closely with its operational production cost. This cost essentially acts as a mechanical support level for the entire Bitcoin ecosystem. Miller pointed out that at the $60,000 price point, less financially stable miners were compelled to exit the market. These underfunded operations, struggling to remain profitable, found themselves unable to continue and therefore had to cease their mining activities. This exit effectively removes a significant source of selling pressure from the market. With the departure of these weaker participants, the relentless cycle of forced liquidations diminishes, allowing Bitcoin's price to stabilize amid a reduced supply of available coins.
The Federal Reserve's Shift in Monetary Policy
In addition to the internal dynamics of Bitcoin mining, Miller highlighted a crucial "180-degree turn" in global monetary policy as a second reason for believing that Bitcoin's bottom was established at $60,000. During his appearance on "Closing Bell," he noted that Bitcoin's peak in late 2025 coincided precisely with the Federal Reserve's strategy of withdrawing $50 billion monthly from its balance sheet. However, the situation changed dramatically when short-term funding markets encountered significant stress in December, prompting the Fed to reverse course. "What they’re doing now is buying $40 billion net per month," Miller remarked, indicating a staggering $90 billion shift in liquidity. This sudden availability of funds from the largest liquidity provider in the world has created a substantial cushion for risk assets, making it increasingly difficult for Bitcoin to fall below the $60,000 level.
A Key Technical Indicator
Finally, Miller pointed to an unusual technical phenomenon that historically signals the end of major bear markets for Bitcoin: the inversion of profitability among holders. Recent on-chain data has shown a crucial transition where the percentage of Bitcoin supply that is currently in a loss surpasses that which is in profit. This particular metric serves as a definitive indicator of market capitulation. When the majority of bitcoins being circulated are at a loss, the incentive to sell generally diminishes, leaving primarily long-term holders—often referred to as “HODLers”—who are reluctant to realize losses. Miller argues that this particular technical aspect acts as a reliable historical signal, suggesting that the peak of pain has already been reached, and the path forward for Bitcoin is now more likely to trend upward.
