Definition ∞ An Investor Capitulation Event describes a period of intense, widespread selling by market participants, often driven by extreme fear and a loss of confidence. During such an event, investors sell assets at any price to exit positions, leading to sharp price declines and significant realized losses. It typically marks a psychological market bottom. This behavior indicates a surrender to market pressure.
Context ∞ Identifying an investor capitulation event is a critical analytical point in crypto market cycles, as it often precedes a period of stabilization or recovery. News reports frequently highlight these moments as turning points, though confirming true capitulation requires careful analysis of on-chain data and market behavior. Such events are often associated with extreme market volatility.
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