Woofun AI reports that Bitcoin's recent decline highlights market vulnerability following the departure of retail investors who previously absorbed sell-offs. Capital rotation into AI sectors has dried up new retail inflows, causing institutional demand to lose momentum.

Analyst Marion Laboure notes that marginal buyers are now limited to ETF allocators and corporate treasuries, with over $6 billion withdrawn from Bitcoin ETFs. Bitcoin currently trades below Strategy's average cost of $75,699, prompting the market to price in potential forced liquidations by leveraged corporate holders.