Weak Hands Capitulation

Definition ∞ Weak hands capitulation is a market event where inexperienced or fearful investors sell their digital assets at depressed prices during a significant market downturn, often at a loss. This selling pressure typically marks the final stage of a bear market, preceding a potential price recovery as strong holders accumulate assets. It signifies a loss of confidence among a segment of investors.
Context ∞ Crypto news frequently references weak hands capitulation to describe periods of extreme market fear and to identify potential market bottoms. Understanding this phenomenon helps investors recognize stages of market cycles and anticipate periods of potential rebound.