Bitcoin worth dropped to ranges on Thursday that positioned it beneath the “Hearth Sale!” band on the Bitcoin Rainbow Chart — a depth not reached for the reason that catastrophic FTX trade collapse in November 2022 — because the Worry and Greed Index registered a studying of 12 out of 100, deep in “Excessive Worry” territory.
Bitcoin worth opened immediately close to $63,500 after sliding beneath $62,000 final evening. That places BTC beneath even probably the most discounted valuation band on the Bitcoin Rainbow Chart — a stage the mannequin traditionally flags as a uncommon and excessive shopping for sign.
The Bitcoin Rainbow Chart is considerably of a logarithmic progress curve overlaid with color-coded sentiment bands. The deepest band — labeled “Principally a Hearth Sale!” — represents the bottom tier of the mannequin’s projected truthful worth vary. When Bitcoin trades beneath it, the asset sits outdoors the historic channel that has contained BTC’s long-term worth habits.
The final confirmed breach of the “Hearth Sale!” flooring occurred through the FTX trade collapse in November 2022, when Sam Bankman-Fried’s crypto empire imploded and BTC cratered underneath pressured promoting strain throughout the market. That occasion stays one of the extreme liquidity crises in crypto historical past.
Per Bitcoin Journal Professional information from March 2026, Bitcoin worth had already begun testing beneath the “Hearth Sale!” zone — described on the time as “its first drop into this space for the reason that FTX-induced crash”.
The renewed descent on June 4 deepens that breach, with the coin shedding floor for the second consecutive week.
Bitcoin worth and market in ‘Excessive Worry’
The Worry and Greed Index, which runs on a scale of 0 to 100, registered 12 on Thursday — inserting the market squarely in “Excessive Worry”. The index aggregates volatility, market momentum, social sentiment, and derivatives information right into a single rating.
A studying beneath 25 indicators excessive concern, a situation that, by the index’s personal framework, has traditionally preceded worth restoration intervals.
February 2026 noticed the index contact an all-time low of 5, pushed by a 52% drawdown from Bitcoin worth’s peak of $126,000. Thursday’s studying of 12 sits simply above that nadir, as Bitcoin worth continues its slide from cycle highs.
On X immediately, Technique’s Michael Saylor argued the sell-off displays institutional capital rotating into AI infrastructure fairly than a deterioration in Bitcoin’s fundamentals. The decline might have been compounded by considerations over Technique promoting 32 BTC to fund preferred-share dividends — its first bitcoin sale since 2022 — regardless of the corporate just lately decreasing debt by repurchasing $1.5 billion of convertible notes at a reduction.
