Bill Miller says BTC bottomed at $60K citing mining cost and Fed liquidity

The cryptocurrency market has endured a white-knuckle ride in early 2026, punctuated by a rather dramatic correction that saw Bitcoin plunge to a staggering low of about $60,000 on February 5^th.

This “flash crash” was triggered by a perfect storm of collapsing leverage, a temporary cooling of the AI-crypto narrative, and fears of a hawkish Federal Reserve.

However, in a display of trademark resilience, Bitcoin staged a rapid-fire recovery – rallying back toward the $70,000 handle within days.

As retail investor remains cautious, Miller Value Partners’ senior portfolio manager Bill Miller has a data-driven conviction: the $60,000 floor wasn’t a temporary pit stop – it was a definitive market bottom.

Speaking with CNBC today, Miller offered three reasons why he believes BTC bottomed last week at the aforementioned price.

Bitcoin mining cost

According to Miller, the most fundamental pillar supporting the $60,000 bottom is the sheer cost of producing a single Bitcoin.

For the first time in this cycle, BTC’s market price aligned with its “cash production cost” – a level that serves as a mechanical floor for the entire ecosystem.

Miller explained that at $60,000, “weak miners start going out of business.”

These undercapitalized operations, unable to maintain profitability, are forced to “shut down” their rigs.

In doing so, the “main source of marginal selling pressure” is effectively eliminated.

When these “weak hands” are purged from the network, the constant stream of forced liquidations dries up, allowing the Bitcoin price to stabilize against a backdrop of reduced supply.

Fed’s liquidity pivot

Beyond internal mechanics of the blockchain, Miller pointed to a significant “180-degree turn” in global monetary policy as the second reason why he believes BTC bottomed at the $60,000 level.

On “Closing Bell”, Miller noted Bitcoin’s peak in the fall of 2025 coincided perfectly with the Fed draining $50 billion a month from its balance sheet.

However, as short-term funding markets faced “extreme stress” in December, the central bank was forced into a radical policy shift.

“What they’re doing now is buying $40 billion net a month,” Miller added, representing a massive $90 billion monthly swing in liquidity.

This sudden influx of capital from the world’s largest liquidity provider has created a “huge floor”, which subsidizes risk assets, making a deeper drop below $60,000 fundamentally difficult.

A key technical indicator

Finally, Miller highlighted a rare technical phenomenon that has historically signalled the end of every major Bitcoin bear market: the inversion of holder profitability.

On-chain data recently revealed a pivotal shift where the “percent of the supply in loss exceeds the percent of the supply in profit.”

This metric is the ultimate gauge of market capitulation.

When the majority of the circulating supply is underwater, the urge to sell has typically already been exhausted, leaving only long-term “HODLers” who are unwilling to realize losses.

Miller argues that this “technical element” serves as a reliable historical marker, signaling that maximum pain has already been felt and the path of least resistance for BTC is now decisively upward.

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