Capitulation is a term used to describe a time of heavy selling activity during which investors abandon their positions and sell their holdings as quickly as possible. Because sell orders peak at a considerably higher-than-average level during a moment of capitulation, the asset price quickly falls until a bottom is established.
Capitulation is also commonly referred to as panic selling.
When the panic selling period ends, signaling the end of the capitulation, there may be a period of consolidation (sideways price fluctuations) or an upward trend, which could signal the start of a bull market.
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Crypto assets are highly volatile and largely unregulated. There is no guarantee that any crypto asset will have at any time in the future certain value (if any) or market liquidity.
Crypto assets are at risk of losing substantial (or all) value within a short time period.
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