CRYPTO GLOSSARY · PSYCHOLOGY

What is Capitulation?

Mass selling at market bottoms in panic.

📖 Full Definition

Capitulation occurs when investors give up hope and sell their holdings en masse, typically at significant losses near market bottoms. Capitulation events often mark the end of bear markets and create buying opportunities.

💡 Example

The November 2022 capitulation saw Bitcoin fall to $15,500, marking the bear market low.

🔗 Related Terms

Bear Market

A period of sustained price declines.

Paper Hands

Selling crypto at first sign of trouble.

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