Woofun AI reports that Bitcoin panic selling appears to be exhausting, a thesis advanced by Wintermute analyst Jasper De Maere as market volatility subsides.

Price stability emerged over the weekend despite escalating geopolitical tensions between the United States and Iran, marking a sharp deviation from historical patterns. In March and April, similar geopolitical friction combined with surging oil prices triggered severe Bitcoin declines. The current resilience suggests a structural change in how external shocks impact the asset.

The deeper driver is a shift in market composition, specifically the exit of investors labeled "weak hands." These participants, typically prone to selling during downturns due to low risk tolerance, have largely departed. Their absence has significantly reduced the pool of sellers willing to offload Bitcoin at current price levels.

Per Woofun AI, the pause in an eight-week streak of outflows from spot Bitcoin exchange-traded funds (ETFs) further supports this view. This halt signals that marginal sellers—those likely to exit at the slightest further decline—have been flushed out. De Maere noted that once these sellers are gone, there will be no more supply looking to sell at the current price level.

While this reduction in downward pressure suggests the market may be approaching a floor, it does not guarantee an immediate rally. Sustained recovery requires broader catalysts such as regulatory clarity, favorable macroeconomic conditions, or renewed institutional demand.

Extreme fear and forced selling that dominated recent months may be subsiding for both retail investors and institutions.

However, the market remains sensitive to external shocks, and while bearish sentiment is easing, a definitive end to the downturn is not yet confirmed.