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capitulation
What does capitulation mean?
A point of extreme fear when investors abandon hope and sell en masse, often near a market bottom. Frequently marks the exhaustion of sellers.
"That washout on huge volume looked like full capitulation."
Origin
Traditional finance term for surrender-selling, widely used in crypto cycles.
Frequently asked questions
What is capitulation in crypto?
Capitulation is a wave of mass panic-selling where investors give up hope and dump their holdings all at once, often near a market bottom.
Does capitulation mean the bottom is in?
It often coincides with a bottom because it exhausts sellers, but it's only reliably identifiable in hindsight, not in real time.
How do you spot capitulation?
It typically shows up as a sharp price washout on unusually high trading volume, signalling a rush for the exits.
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