A period of strong selling activity is when investors abandon their positions and actively sell their holdings. It is frequently referred to as "panic selling" because, during a period of capitulation, sell orders peak at an exceptionally high level, swiftly pushing the asset price to a bottom. Investors who accept losses and forfeit earlier earnings are considered to have capitulated when they lose hope. There may be a period of consolidation (sideways price swings) or an upward trend after the panic selling phase of the capitulation, which might potentially herald the beginning of a bull market. Because FUD and panic are commonly present during capitulation episodes, the selling pressure rises above average levels and reaches oversold conditions, which frequently leads to price reversals and substantial upward trends. The quicker and more drastic the price decline, the more likely it is that it will be followed by a significant bounce. Military forces once referred to the act of ceding territory or a troop as "capitulation" when discussing terms with an opposing army. The expression refers to the moment when investors yield to market forces when applied in a financial setting. In times of panic selling, investors choose to sell their assets at the current market price rather than holding onto them in anticipation of a market recovery or rebound (market orders are usually used in these situations). When the market exhibits an abnormally high amount of sell orders in a brief period of time and a steep price decline, it may be a sign of capitulation. Although capitulation is not always easy to predict, it is straightforward to spot when it occurs since market prices are put under intense downward pressure and move quickly and sharply. Additionally, there are capitulations on the cryptocurrency markets, which are typically stronger and quicker than those on more established marketplaces. At the beginning of 2015, there was a significant FUD period as a result of a protracted bear market that continued through 2014. Investors began dumping their shares en masse out of fear of suffering even greater losses. The capitulation occurred on January 15th, 2015, when a sharp rise in sell orders resulted in a drop in the price of the most known cryptocurrency of almost 38% in just two days. In this instance, the bottom reached around $167, denoting a loss of 85.5% from the top in 2013 (about $1153), and the end of capitulation marked the beginning of a bull market. The surge the next day was just as large as the drop the day before, with a 38% gain in a single day. Smaller, more volatile markets are more likely to capitulate, and they are also simpler to see. Remember, though, that they are not typically followed by a bull market and are not to be interpreted as a sign of future success.