What marks the end of a bear market? Capitulation. But have we reached it yet?
There is some disagreement about what causes the end of a bear market, but many economists point to capitulation.
Capitulation, which means surrender is when a stock, an asset, or in this case a cryptocurrency falls so far and there is such an environment of pessimism that anyone who is at all primed to sell gives up hope. The market falls so low, there is a "mass surge of selling pressure that marks a surrender by investors."
As the market has now been fully sold by anyone who was at all primed to sell, the only place for it go now is back up, gradually or quickly.
Why this is of recent interest in crypto is that whether or not we have reached the final capitulation of a bear market, there was a capitulation-like event, where Bitcoin fell to under $20K and ETH under $1K.
Does this mean the market will continue to gradually go back up, or is there another big drop in store for crypto?
Who knows. But if there is another big drop, that could well signal the bottom is as low anyone primed to sell is willing to go.
submitted by /u/thatisyou
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