My thoughts on this…
If the miners have enough financial reserves - and that’s the big if - they will not sell to the market below their production cost. They will hold for as long as they need/can. Miners holding back their production will *possibly* cause a shortage of supply and stop the price taking any further: a price floor.
Oops. “… stop the price FALLING any further”
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That’s a good point, thanks! I guess since prices are set at the margin, fresh supply might be a very significant part of the traded volume on a given day.
