Capitulation Definition - Glossary

Capitulation is the point when investors sell off assets, typically at a loss, due to fear or panic.

Capitulation is a critical moment in financial markets when investors decide to sell their positions, often at a loss, due to overwhelming fear or panic. This typically occurs during a market downturn when pessimism peaks and sellers outnumber buyers, driving prices lower. It is often seen as a sign of market bottoming, as the selling pressure may be exhausted. In the context of crypto/fiat exchanges, understanding capitulation can help investors identify potential buying opportunities or avoid unnecessary losses by recognizing market sentiment trends.