Definition ∞ Crypto capitulation describes a market event where investors collectively relinquish their positions, selling digital assets irrespective of price. This typically occurs during severe market downturns, characterized by widespread panic selling and significant price depreciation. It represents the point of maximum financial pain for many holders, often preceding a market bottom.
Context ∞ News reports frequently cite crypto capitulation as a key indicator of market exhaustion during bear cycles. Understanding this phenomenon helps distinguish between regular market corrections and periods of extreme investor despair. The recovery following such an event can be slow, but it often marks a long-term low point for asset prices.
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