Bitcoin Faces 'Worst Week Since FTX,' Signaling Potential Bottom Amidst Extreme Undervaluation
Bitcoin Faces 'Worst Week Since FTX,' Signaling Potential Bottom Amidst Extreme Undervaluation
Bitcoin experienced its most significant weekly percentage decline since the FTX collapse in November 2022, dropping nearly 20%. This sharp fall, driven by institutional selling and fading confidence, has pushed Bitcoin's price to approximately $62,150, over 50% below its October 2025 all-time high. Despite immediate fears of further declines, some analysts are drawing comparisons to previous bear market bottoms, suggesting that the asset's current 'extreme undervaluation' based on the Porkopolis Power Law Quantile Regression model could precede a multi-year recovery, echoing historical patterns from 2015, 2018/2019, and 2022.
Bitcoin’s Worst Week Since FTX Raises The Question: Is The Bottom Already In?
Bitcoin closed the week of June 5, 2026 down by almost 20%, its highest single-week percentage decline since the collapse of FTX in November 2022. The last time the market saw a candle this red, it was during the cycle bottom. This time, however, the current setup is more complicated, as Bitcoin is reacting to a combination of institutional selling pressure, ETF weakness, and fading confidence after a failed recovery attempt above $82,000.
Related Reading: XRP Monthly RSI Drops To All-Time Low As Market Watches For Confirmation Bitcoin’s Drop Brings Back The FTX Comparison Bitcoin's price action in the first week of June was one of its most notable weeks in history. BTC opened the week around $73,760, briefly pushed as high as $74,092, and then fell to a low of about $59,130, according to data from TradingView. The move translates to a decline of about 19.5% from the weekly open to the low and 20.1% from the high to the low, making it Bitcoin’s worst weekly percentage drop since the FTX crash in 2022, when the price fell by roughly 22% in a single week.
However, there is also a note about where the candle is showing up in the market structure. During the FTX collapse, the violent weekly move came after months of selling pressure and ended up happening close to the final bear-market bottom. The current decline is also appearing after Bitcoin has already lost a major portion of its value from the October 2025 all-time high above $126,000.
Bitcoin Price Chart. At the time of writing, Bitcoin is trading at $62,150, placing it about 50.7% below that peak. The similarity does not guarantee that the market has reached a bottom, but it does raise the possibility that the latest weekly price crash is moving into the kind of final-washout zone that followed FTX’s crash. That angle is being overlooked by many analysts, especially as several forecasts still point to a prolonged bear market that could stretch into at least Q4 2026.
Bitcoin Enters Extreme Undervaluation
Crypto analyst Darkfost noted that Bitcoin has now fallen below the 4% quantile on the Bitcoin Porkopolis Power Law Quantile Regression model. The chart places Bitcoin’s current quantile around 3.9%, meaning the asset is trading in a zone that has appeared during less than 4% of its historical price action relative to its long-term growth curve. The Power Law model is a long-term valuation model that can also be used for a reversal signal. Every prior instance in which the quantile oscillator reached this level, visible in the chart across 2015, 2018/2019, and the 2022 bottom, preceded notable multi-year recoveries. Bitcoin Power Law Regression. Source: @Darkfost_Coc On X Related Reading: Bitcoin Price Plunges To $59K, Sparking Fears Of Deeper Decline Bitcoin can stay undervalued for longer than traders expect, especially if the momentum is weak and there's forced selling. Still, the metric does show that Bitcoin is now much closer to the lower regression bands than the overheated upper bands in previous cycle peaks.
Featured image from Pexels, chart from TradingView