Capitulation occurs when traders are scared. On March 12, most asset classes witnessed a massive selloff with no place to hide. Even gold declined 3.17%, which shows that the traders sold everything in their portfolio. The coronavirus pandemic has created a state of panic because it does not have any treatment and spreads quickly. As a result, large cities and in some cases, the whole country is in a lockdown, in attempts to control it.
That led to panic selling in cryptocurrencies on March 12, which had been comparatively holding up quite well until then. The market capitalization of the crypto universe plunged from about $224 billion on March 12 to a low of about $131.5 billion on March 13. That is a fall of over 41%, which shows the extent of the carnage.
Continue Reading on Coin Telegraph
