If you have ever engaged in trading digital assets, you have surely heard the term "capitulation." But can you explain its meaning? 🤔
Capitulation refers to a market situation where there is a mass sell-off of assets. Investors panic, close their positions, and rapidly dispose of cryptocurrencies. As a result, there is a sharp drop in prices, and trading volumes significantly exceed average levels.
In simple terms, "capitalization" in the context of the cryptocurrency market reflects the total value of all coins of a particular asset if they were to be realized all at once. Thus, when the price of Bitcoin rises to 50,000💵, its market capitalization will also increase.
It is important to understand that a high price of a cryptocurrency does not automatically guarantee a high market capitalization.
This indicator depends on the total supply of the number of coins issued in circulation. For example, Dogecoin may not boast a high price per unit, but it ranks in the top 10 by market capitalization.
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If you have ever engaged in trading digital assets, you have surely heard the term "capitulation." But can you explain its meaning? 🤔
Capitulation refers to a market situation where there is a mass sell-off of assets. Investors panic, close their positions, and rapidly dispose of cryptocurrencies. As a result, there is a sharp drop in prices, and trading volumes significantly exceed average levels.
In simple terms, "capitalization" in the context of the cryptocurrency market reflects the total value of all coins of a particular asset if they were to be realized all at once. Thus, when the price of Bitcoin rises to 50,000💵, its market capitalization will also increase.
It is important to understand that a high price of a cryptocurrency does not automatically guarantee a high market capitalization.
This indicator depends on the total supply of the number of coins issued in circulation. For example, Dogecoin may not boast a high price per unit, but it ranks in the top 10 by market capitalization.