Definition ∞ Long-term holder capitulation describes a phase in a bear market where even investors who have held their digital assets for extended periods finally sell their holdings, often at a loss, due to sustained price declines and extreme negative sentiment. This event is typically seen as a signal that the market has reached an extreme bottom, as the strongest hands are exiting. It indicates a near-complete exhaustion of selling pressure.
Context ∞ On-chain metrics are frequently employed to identify long-term holder capitulation, looking for spikes in realized losses among older coin cohorts. This phenomenon is a key indicator for analysts attempting to predict the end of a bear market and the beginning of a new accumulation phase.
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