BTC breaches a key long-term valuation model for the second time, fueling debate over its predictive value amid institutional adoption.
Bitcoin fell below $62,500, breaching the lowest band of the Bitcoin Rainbow Chart—a model tracking its price cycles for over a decade. The drop marks only the second time BTC has entered the chart’s ‘Bitcoin Is Dead’ zone, following a 50% decline from its October 2025 high of $126,000.
The Rainbow Chart, once a widely followed sentiment gauge, now faces skepticism as ETFs and institutional investors reshape market dynamics. Analysts are divided, with some viewing the breach as a buying opportunity, while others argue the model’s relevance has faded.
The last time BTC traded in this zone was in 2022 at $15,000, before a cycle bottom. Market participants are closely watching whether this signals a repeat or a structural shift in bitcoin’s behavior.