When the price of $BTC falls below production costs, many miners are forced to shut down machines or sell their inventory of Bitcoin to cover operating expenses. This situation typically occurs after a significant drop in Bitcoin's price, so the "miner capitulation" often marks the bottom.

As shown in the figure below, the average cost of mining one Bitcoin is currently about $90,000 (according to Blockware calculations), with Macro Micro estimating it at $91,700.