---
title: >-
  Bitcoin Price Plunges Below 'Fire Sale' Territory as Fear Index Reads 12 —
  Echoing the FTX Crash
url: >-
  https://www.cryptocatalyst.news/articles/2026-06-07-bitcoin-drops-to-fire-sale-levels-as-fear-index-hits-12
canonical: >-
  https://www.cryptocatalyst.news/articles/2026-06-07-bitcoin-drops-to-fire-sale-levels-as-fear-index-hits-12
date: '2026-06-07T13:05:55.465102+00:00'
category: bitcoin
tags:
  - bitcoin
  - price
  - fear
  - investing
  - cryptocurrency
source: Bitcoin Magazine
source_url: 'https://bitcoinmagazine.com/markets/bitcoin-price-plunges-below-fire-sale'
publisher: CryptoCatalyst
summary: >-
  Bitcoin's price has fallen below the 'Basically a Fire Sale!' level on the
  Bitcoin Rainbow Chart, a rare event that last happened during the FTX
  collapse. The Fear and Greed Index has also dropped to 12, indicating extreme
  fear in the market.
image: >-
  https://www.cryptocatalyst.news/images/articles/2026-06-07-bitcoin-drops-to-fire-sale-levels-as-fear-index-hits-12.webp
generated_by: automated editorial pipeline
---
# Bitcoin Price Plunges Below 'Fire Sale' Territory as Fear Index Reads 12 — Echoing the FTX Crash

Bitcoin's price has fallen below the 'Basically a Fire Sale!' level on the Bitcoin Rainbow Chart, a rare event that last happened during the FTX collapse. The Fear and Greed Index has also dropped to 12, indicating extreme fear in the market.

Bitcoin's price has dropped below the 'Basically a Fire Sale!' level on the Bitcoin Rainbow Chart, a rare occurrence that has only happened twice since the FTX collapse in 2022. This level is typically seen as a sign of extreme undervaluation. 

The price drop coincides with the Fear and Greed Index hitting 12, the lowest level on the scale, indicating extreme fear in the market. The Bitcoin Rainbow Chart, a long-term valuation model, uses logarithmic growth bands to show where Bitcoin's price stands relative to its historical performance. 

For everyday investors, this could mean that Bitcoin is currently at a historically low price point, potentially offering a buying opportunity for those with a long-term perspective. However, it also signals high market volatility and uncertainty, which could lead to further price fluctuations. 

Investors should watch for any signs of market recovery or further declines. The next key levels to monitor are the support levels below the current price and any potential catalysts that could drive the price back up, such as positive regulatory news or institutional investment. Read more → https://bitcoinmagazine.com/markets/bitcoin-price-plunges-below-fire-sale

## Source

This article is a summary of reporting by [Bitcoin Magazine](https://bitcoinmagazine.com/markets/bitcoin-price-plunges-below-fire-sale), written by an automated editorial pipeline. See https://www.cryptocatalyst.news/editorial-policy.

## How to cite

CryptoCatalyst.news, "Bitcoin Price Plunges Below 'Fire Sale' Territory as Fear Index Reads 12 — Echoing the FTX Crash", 2026-06-07, https://www.cryptocatalyst.news/articles/2026-06-07-bitcoin-drops-to-fire-sale-levels-as-fear-index-hits-12