IntoTheBlock: Crypto Markets May Enter ‘Capitulation Phase’ as Overleveraged Positions Are Removed

On 25 February, Juan Pellicer, Senior Research Analyst at IntoTheBlock, reportedly said that the current market downturn could be a sign of an impending ‘capitulation phase’. He noted that the recent market correction, especially with the large number of liquidations (e.g., in assets such as Solana), suggests that a capitulation sell-off may be in the offing as over-leveraged positions are gradually removed.

In financial markets, a ‘capitulation sell-off’ refers to a massive sell-off of assets by investors in response to panic, resulting in a sharp drop in prices, a process that is often seen as a precursor to a market bottom.