Loss of faith in a particular crypto asset is called capitulation where the investors give away their positions in the market which leads to an enormous sell order. This leads to a sharp decline in the price of assets until it reaches rock bottom.

Market professionals consider such times as a great opportunity to buy crypto projects with good fundamentals since their prices are low compared to the utility provided by them. Capitulation is also synonymous to panic-selling in crypto. These trades are way severe in crypto and are quite quick since the market still relies heavily on the hype created by media and whale market manipulation is also quite common in this space.

Capitulations are generally followed by price consolidation periods or an uptrend in the asset price. The uptrend in the price of the asset is typically due to the enormous sell orders received. The more drastic the capitulation, the higher the possibility of a strong bounce.

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