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Home/Glossary/Capitulation
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Capitulation

In shortA wave of panic selling where many holders give up and sell at any price.

Capitulation usually comes with huge volume, mass liquidations and extreme fear on the Fear & Greed Index. It often marks — but does not guarantee — the end of a downtrend.

← Capital rotationAll terms A–ZCBDC (central bank digital currency) →

Related terms

  • Bear marketA long period of falling prices and pessimism, often a drop of 20% or more from the high.
  • Fear & Greed IndexA score from 0 (extreme fear) to 100 (extreme greed) that summarizes crypto market sentiment.
  • LiquidationThe forced closing of a leveraged position or loan when its collateral no longer covers the losses.
  • Loss aversionThe tendency to feel losses about twice as strongly as gains of the same size.
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