Bitcoin worth dropped to ranges on Thursday that positioned it under the “Fireplace Sale!” band on the Bitcoin Rainbow Chart — a depth not reached for the reason that catastrophic FTX alternate collapse in November 2022 — because the Concern and Greed Index registered a studying of 12 out of 100, deep in “Excessive Concern” territory.
Bitcoin worth opened at this time close to $63,500 after sliding under $62,000 final night time. That places BTC under even essentially the most discounted valuation band on the Bitcoin Rainbow Chart — a degree 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 “Mainly a Fireplace Sale!” — represents the bottom tier of the mannequin’s projected honest worth vary. When Bitcoin trades beneath it, the asset sits exterior the historic channel that has contained BTC’s long-term worth habits.
The final confirmed breach of the “Fireplace Sale!” ground occurred through the FTX alternate collapse in November 2022, when Sam Bankman-Fried’s crypto empire imploded and BTC cratered beneath compelled promoting stress throughout the market. That occasion stays one of the extreme liquidity crises in crypto historical past.
Per Bitcoin Journal Professional knowledge from March 2026, Bitcoin worth had already begun testing under the “Fireplace 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 Concern’
The Concern and Greed Index, which runs on a scale of 0 to 100, registered 12 on Thursday — inserting the market squarely in “Excessive Concern”. The index aggregates volatility, market momentum, social sentiment, and derivatives knowledge right into a single rating.
A studying under 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 at this time, 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 issues over Technique promoting 32 BTC to fund preferred-share dividends — its first bitcoin sale since 2022 — regardless of the corporate lately decreasing debt by repurchasing $1.5 billion of convertible notes at a reduction.
