Bitcoin has broken key support at $65,000, leading to a $90 billion sell-off across the crypto market. This bearish shift, largely driven by Bitcoin, is testing the $60,000 level as weak spot demand and negative Bitcoin ETF flows fail to provide support. Analysts warn the Bitcoin mining cost, now near $53,500, could fall further, indicating miner stress and raising the risk of a deeper price drop before a sustainable bottom is found.
Crypto markets turned decisively bearish after a sharp sell-off on February 23rd. The total market capitalization fell 3.81%, erasing approximately $90 billion in value and shifting technical momentum to the downside.
Over 60% of the outflows originated from Bitcoin, confirming the move was BTC-led. Once Bitcoin lost the $65,000 support range, it triggered another wave of long liquidations, suggesting bears have taken control.
Spot demand has not shown a strong response to the lower prices. Meanwhile, Bitcoin ETF flows remain negative, pointing to a lack of dip buying from institutional investors.
This lack of conviction means investors may be waiting for a deeper pullback. If buyers do not appear soon, the risk of a capitulation wave begins to build.
A key metric to watch is Bitcoin‘s “Electrical Cost,” which has dropped to around $53,500. This decrease from higher levels previous quarters usually occurs as weaker miners exit the network and difficulty adjusts.
Historically, BTC tends to find a bottom above this production cost. However, current weak spot demand is limiting upside momentum and raising the risk of a deeper pullback.
Some analysts think the Electrical Cost could drop closer to $45,000 before Bitcoin actually bottoms. This signals that miner capitulation risk has not fully faded yet.
Unless spot buyers arrive with conviction, the $60,000 support level appears shaky. This makes the risk of a further breakdown difficult for the market to ignore.
