Capitulation
A phase of panic selling where exhausted holders give up en masse — historically clustered near cycle bottoms.
Capitulation is the point in a decline where holders abandon hope and sell in a self-reinforcing panic, often producing a sharp, high-volume flush lower. Emotionally it’s the moment “this is going to zero” becomes consensus — which is precisely why it has historically clustered near major bottoms.
On-chain, capitulation shows up as spikes in coins moving at a loss (SOPR well below 1), extreme NUPL readings, and miner capitulation. It exhausts sellers, setting up recoveries. Recognizing it is easier after the fact than during — the fear that defines capitulation is the same fear that makes buying then feel impossible, which is the whole point.