Capitulation Phase

Definition ∞ The capitulation phase in financial markets, including cryptocurrency, describes a period of intense, widespread selling driven by panic and despair among investors. During this phase, market participants sell their holdings at any price, often at significant losses, in a final act of giving up on their investments. This typically marks the climax of a bear market, preceding a potential market bottom and subsequent recovery. It is characterized by extreme fear and high trading volume.
Context ∞ Crypto news frequently identifies and discusses capitulation phases as critical turning points in market cycles, particularly for Bitcoin and other major digital assets. Observing metrics such as high selling pressure, increased exchange inflows, and negative sentiment indicators helps confirm this market stage. Understanding capitulation assists investors in recognizing potential opportunities for long-term accumulation, though timing it precisely remains challenging.

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→Short Term Holder

→Aggregate Cost Basis

→Realized Value Metrics

Recent Investor Loss Ratio Confirms Market Liquidity Has Vanished

Recent investors are realizing 14 times more losses than profits, signaling a complete evaporation of market demand.

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→Structural Market Bottom

→Realized Cap Crossover

→Ethereum Undervaluation

Ethereum Is Structurally Undervalued, Signaling a Market Capitulation Bottom

The average cost basis of all Ethereum holders now exceeds the current market price, confirming a historical undervaluation zone.

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→Asset Performance

→Crypto Market Health

→Digital Asset Trends

Altcoin Profitability Plummets, Signaling Unprecedented Market Divergence

Altcoins are in a deep surrender zone as only 5% remain profitable, marking an unusual and significant divergence from Bitcoin.

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→SOPR Reset

→Market Bottom Signal

→ETH Supply Dynamics

Ethereum Capitulation Is Over; Selling Pressure Exhausted at Key Support

The average Ethereum seller is now realizing a loss, confirming that weak hands have exited the market and significantly reducing future selling pressure.

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→Price Floor

→Realized Losses

→Coin Age

Short-Term Holders Are Selling at a Loss: Is Capitulation Complete

Newer investors are selling their Bitcoin below cost, a sign of market fear that historically precedes a durable price bottom.