However, mined Bitcoins required Electricity and Hardware, very real assets to produce -- it is unlikely that large miners will be willing to release their BTC for a price significantly lower than the cost they incurred to generate the BTC
The cost/difficulty of mining is not constant, but adjusts in response to the number of nodes mining at any given moment. If the value of Bitcoins go down and people stop mining, the network responds by making it easier to mine so people start mining again. That way, Bitcoins are created at a predictable rate, whether Bitcoins are valued at $100 or $0.01. The price floor effect you're talking about won't happen.