Key facts
- Bitcoin price has fallen below the "Fire Sale!" band on the Bitcoin Rainbow Chart.
- This price level has not been reached since the FTX exchange collapse in November 2022.
- The Fear and Greed Index registered a reading of 12 out of 100, indicating "Extreme Fear".
- Bitcoin price opened near $63,500 on Thursday, having fallen below $62,000 the previous night.
- The Bitcoin Rainbow Chart's "Fire Sale!" band represents the lowest tier of its projected fair value range.
Bitcoin's price has fallen below the "Fire Sale!" band on the Bitcoin Rainbow Chart, a valuation level not seen since the FTX exchange collapse in November 2022. The Fear and Greed Index registered a reading of 12 out of 100 on Thursday, signaling "Extreme Fear" in the market. Bitcoin opened near $63,500 on Thursday, having dropped below $62,000 the previous night. The Bitcoin Rainbow Chart, a logarithmic growth curve with sentiment bands, flags the "Fire Sale!" band as its lowest projected fair value range. The last confirmed breach of this floor occurred during the FTX implosion, a significant liquidity crisis. Bitcoin had previously tested below this zone in March 2026. The current decline marks the second consecutive week of losses. The Fear and Greed Index's reading of 12 is close to its all-time low of 5 recorded in February 2026, following a 52% drawdown from Bitcoin's peak of $126,000. Michael Saylor suggested the sell-off is due to institutional capital moving into AI infrastructure, not a deterioration of Bitcoin's fundamentals. MicroStrategy's sale of 32 BTC to fund dividends, its first Bitcoin sale since 2022, may have also contributed to the decline, despite the company recently repurchasing $1.5 billion of convertible notes.