When it costs miners (who lack the economies of scale and access to cheap electricity that major miners have) more to produce Bitcoin than the block rewards and transactions fees they receive from doing so, they simply shut off their miners until the price gets high enough to operate profitably again (of course they could also just continue to operate at a loss in the short-term, but financial resources are always limited so they would have to stop operating at some point if the price doesn’t increase).
There will always be SOME miners who have access to cheap enough electricity and economies of scale for whom it continues to be profitable to mine.
There will always be SOME miners who have access to cheap enough electricity and economies of scale for whom it continues to be profitable to mine.