The move pushed Bitcoin into a historically rare valuation zone last seen during the FTX collapse, while sentiment remained deep in extreme fear territory.
Bitcoin fell below the lowest 'Basically a Fire Sale!' band on the Bitcoin Rainbow Chart on June 4, a historically rare breach that the model last saw during the FTX collapse in November 2022. The drop came as the crypto Fear & Greed Index registered 12, keeping the market in extreme fear even after rising from 11 a day earlier. Bitcoin traded below $62,000 overnight after opening near $63,500, extending losses for a second straight week. Bitcoin Magazine said the breach deepened a test below the band that had already emerged in March 2026. The report also cited Michael Saylor as saying on X that institutional capital was rotating into AI infrastructure rather than leaving because of weaker Bitcoin fundamentals, while noting concerns that Strategy's sale of 32 BTC to fund preferred-share dividends may have added to pressure.