What does it mean that Christ is the propitiation for our sins?

In 1 John 2:2, it is stated, 'And he is the propitiation for our sins: and not for ours only, but also for the sins of the whole world.' The term 'propitiation' refers to the appeasement of God's wrath through the sacrifice of Christ. By bearing the penalty for sin, Jesus satisfies God's justice while demonstrating His mercy towards those who believe. This means that the judgment for sin has been fully dealt with in Christ, allowing believers to stand righteous before God, accepted in His beloved Son.