Bitcoin price fell on Thursday to levels that pushed it beneath the “Fire Sale!” band on the Bitcoin Rainbow Chart — a depth not seen since the disastrous FTX exchange collapse in November 2022 — as the Fear and Greed Index recorded a reading of 12 out of 100, firmly entrenched in “Extreme Fear” territory. Bitcoin price commenced today at approximately $63,500, following a dip below $62,000 during the previous night. That positions BTC beneath even the most discounted valuation band on the Bitcoin Rainbow Chart — a threshold the model has historically identified as a rare and extreme buying signal.
The Bitcoin Rainbow Chart presents a logarithmic growth curve that is enhanced by colour-coded sentiment bands. The deepest band — labelled “Basically a Fire Sale!” — represents the lowest tier of the model’s projected fair value range. When Bitcoin trades beneath it, the asset resides outside the historical channel that has defined BTC’s long-term price behaviour. The last confirmed breach of the “Fire Sale!” floor took place during the FTX exchange collapse in November 2022, when Sam Bankman-Fried’s crypto empire imploded and BTC plummeted under forced selling pressure across the market. That event stands out as one of the most significant liquidity crises in the history of cryptocurrency.
According to data in March 2026, Bitcoin’s price was already starting to test levels beneath the “Fire Sale!” zone — noted then as “its first drop into this area since the FTX-induced crash.” The renewed descent on June 4 intensifies that breach, as the coin loses ground for the second consecutive week. The Fear and Greed Index, which operates on a scale of 0 to 100, recorded a value of 12 on Thursday — positioning the market firmly in “Extreme Fear”. The index consolidates volatility, market momentum, social sentiment, and derivatives data into a unified score. A reading below 25 indicates extreme fear, a state that, according to the index’s framework, has historically come before price recovery periods. In February 2026, the index reached an unprecedented low of 5, influenced by a staggering 52% decline from Bitcoin’s peak price of $126,000.
Thursday’s reading of 12 hovers just above that low point, as Bitcoin price persists in its descent from cycle highs. On X today, Strategy’s Michael Saylor contended that the sell-off signifies institutional capital shifting towards AI infrastructure, rather than indicating a decline in Bitcoin’s fundamentals. The decline may have been compounded by concerns over Strategy selling 32 BTC to fund preferred-share dividends — its first bitcoin sale since 2022 — despite the company recently reducing debt by repurchasing $1.5 billion of convertible notes at a discount.