Capitulation
| Capitulation is when investors sell their cryptocurrencies or assets despite a big loss, because they don’t believe that the price will ever increase again. It usually happens when the market is going through a long period of decline, and investors lose hope that the prices will ever recover. When the market is in a long-term decline, some investors may give up and sell their assets at a loss, in a process called capitulation. This generally happens when investors no longer believe that prices will ever recover and they want to cut their losses. Capitulation can be a difficult decision for investors, as they may have put a lot of money and time into their investment, and it can be hard to give up on something you believe in. However, sometimes it is necessary in order to avoid even bigger losses. If you are considering capitulation, it is important to remember that the market is always cyclical and prices will eventually recover. There have been many times in the past where the market has declined for a long period of time, only to rebound and reach new highs. So, if you sell your assets during a capitulation, you may miss out on the eventual recovery. Of course, there is no guarantee that the market will rebound and you may end up selling your assets for less than they are worth. However, if you believe in the long-term potential of the market, then it may be worth holding on to your assets and weathering the storm. |
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