Bitcoin’s $63K Breakdown: Miner Selling and $203M ETF Exits Explained

Ben Graham · 2026-02-24T11:46:17Z

Bitcoin completely broke through the $63,000 support level late Monday, 23 February 2026. This is indeed a grim start to the week for BTC holders.

The world’s largest cryptocurrency tumbled more than 3% in 24 hours to test lows near $62,700, driven by a wave of selling that has caught many off guard.

But why is this Bitcoin price dip happening now? It isn’t just one thing going wrong; it is two massive forces colliding at the same time. We are seeing a rare combination of miners selling their stash to pay bills and big institutional investors stepping back from the table.

Let’s look at the second pressure point, which is coming from the very people who secure the network: the miners. We are currently witnessing a phase of miner capitulation. Miners are giving up and selling their Bitcoin holdings to cover their costs. Recent on-chain data shows miners have been in a “negative net position” for over 46 days. They are selling more Bitcoin than they are mining because their profit margins are being squeezed.

Bitcoin miners remain under immense pressure, with hash price nearing all-time lows. This is forcing treasury sales to cover operational expenditure.

— Glassnode (@glassnode) March 18, 2025

However, there is a silver lining here. Usually, this intense selling leads to a difficulty adjustment, where the network makes it easier to mine.

In fact, Bitcoin mining difficulty recently plunged, which should eventually help stabilize miner profitability. But until that relief fully kicks in, miners act as a constant source of selling pressure, keeping a lid on any price rally.

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Another $203 Million Exited ETFs

When the big whales stop buying and start selling, the price naturally drops.

The first major pressure point comes from Wall Street. For nearly a month, we have seen a consistent trend of money leaving the US Spot Bitcoin ETFs. These funds have logged their fifth consecutive week of net outflows.

On Monday alone, another $203 million exited these products. When Bitcoin ETF outflows like this, it forces the fund managers to sell actual Bitcoin to give investors their cash back. This creates immediate, mechanical selling pressure on the market.

When you combine the mentioned factors, the breakdown below $63,000 makes perfect sense. With liquidity draining and no new supply shock to counteract it, the price has nowhere to go but down.

The “Extreme Fear” in the market, is currently sitting at extreme lows on sentiment indexes.

While the drop to $63,000 is painful, it is important to look at the bigger picture. We have seen analysts warn that a flush-out was necessary to reset the market.

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What Happens If The $60,000 Psychological Level Fails

The key thing to watch now is where the price finds its footing. There is a broad debate about where the “line in the sand” really is.

If the $60,000 psychological level fails, technical indicators suggest the next major Bitcoin price support sits near $58,700. This level often represents the cost basis for many recent investors, the price they paid to get in.

However, if ETF outflows begin to slow down or reverse, and miner selling exhausts itself (as it historically always does), we could see a sharp reversal. The market is currently aggressively “short” (betting on lower prices), which can sometimes act as fuel for a rally if sentiment shifts unexpectedly.

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Bitcoin has broken below pivotal support at $63,000, driven by a 3.3% drop in 24 hours.
Institutional demand is cooling, with ETFs recording five consecutive weeks of net outflows totaling millions.
Miners are in a capitulation phase, selling reserves to cover costs, adding constant sell pressure to the market.

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