Some funny businesses are going on in the crypto and other capital markets. In this article, we will go over the definition of the word capitulate. After we define capitulate, we will move on to the next part, meaning learning about capitulation in crypto.
Before everything, you must first have a clear idea about the capitulate definition. In the next section, we will search online for the phrase capitulate to learn to capitulate meaning.
To define capitulate, like every other word, we must check the dictionary first. According to the dictionary, capitulate means “to surrender, often after negotiation of terms” or “to cease resisting.” Then, that’s the capitulate meaning if you look it up in a dictionary or something similar.
But we should see the capitulate meaning in the financial world. Then, in the next section, we will define capitulate in the stock market.
The words and slang that are used in the financial world are slightly different from what they mean in the real world. In the next section, we will see what is the capitulate definition. Then, we would go On to the next part to find out what it means. Or in other words, what would you do in the financial market if you witnessed capitulation. But, let’s not get ahead of ourselves and learn the definition of capitulation in the financial market.
Capitulate Stock Market
This section will define capitulate in the stock market. If you are a crypto enthusiast you probably want to know the capitulate meaning in the stock market, and not just the capitulate definition. Capitulate definition in the stock market follows the word’s meaning in the real world. Therefore, to define capitulate in the stock market, you will need to define capitulate in the first place. Now, let’s jump into the capitulate meaning.
The capitulate meaning is to “stop resisting”. Capitulate definition in the stock market is pretty much close to its literal meaning. The capitulate definition is when bulls or buyers lose all hope in the market and start selling. Then, the price plunges and experiences a dramatic drop.
What does capitulate mean in crypto?
Capitulate definition is to stop resisting or to accept defeat. In the financial world, it kinda means the same thing but in financial terms. In trading, capitulation is when all the traders and investors lose hope (well, most of them). So, the capitulate definition is pretty close to its dictionary term. In the crypto market, a capitulation is when investors decide that “maybe this coin can never recover from this.” It is when a significant portion of bulls turn bears in a relatively short period. When a coin capitulates, it reaches a price that most traders thought it could never reach.
For example, in early 2020, when the Bitcoin price dramatically dropped to 3700, most investors and traders thought that Bitcoin was dead for sure. Due to the financial crisis in the world due to covid-19 and other reasons bitcoin had reached a price almost no one could believe. When a big group of investors and traders think that a particular coin is dead, they start panicking. Therefore they can’t think logically, causing them to sell every token they have at any price they can. They are only thinking about getting out as if it was a sinking ship.
Why does capitulation happen?
The reason for capitulation is that investors fear losing all of their money. They think that the token will not reach back to the price that it once was before, and will only lose more of its worth. Therefore, they are in a hurry to exit the market and wouldn’t mind selling their tokens for a lower price.
Therefore, the price of the token drops dramatically. You should note that capitulation doesn’t happen because one investor waves of panic or 1000 investors panic. The capitulation happens only when an extremely large group of investors decide to sell their tokens or stocks as soon as possible.
The “as soon as possible” part is important. They are in so much hurry it’s like they’re all crawling on top of each other trying to get out of a burning building all at once. They’re hurry makes everything worse.
When investors want to sell ASAP, they sell at a lower price. When a huge number of investors all decide to sell at a lower price just to get out of the market sooner, the price plunges.
What does capitulation indicate?
The capitulation is the indication of one of a security’s lowest moments. When the price of a security goes through capitulation, the price of the capitulation is usually marked and pretty much noticeable for every technical analyst, and also non-analysts. This is because the price drops dramatically during a capitulation and almost everyone will notice it when it shows up on a chart.
What does capitulation mean in Crypto?
Capitulation means “to stop resisting”. In the crypto industry the capitulate definition is when the bulls stop resisting and also sell. Capitulation in the crypto market is when in a downtrend a surge happens in the price and it drops dramatically. Capitulation will be marked amongst those who are in the financial world.
Is capitulation bullish?
Capitulation is when the price is in a downtrend and constantly reducing, then comes the most desperate time for the investors, the capitulation. Then, the price drops dramatically and most investors find out later that they have made a mistake selling, the trend is usually reversed after a capitulation. Then, yes. Capitulation is usually bullish.
Who is buying when everyone is selling stock?
For a person who is selling there should be a person who is buying so the transaction takes place. A transaction cant is made without both a buyer and a seller. Therefore, when a lot of people are selling, a lot of people are also buying.