Bubble

A bubble is an economic phenomenon where the price of an asset rises far beyond its fundamental value, driven by speculation, hype, and fear of missing out (FOMO). Bubbles follow a pattern of rapid price appreciation, euphoria, and eventual collapse when reality sets in and selling overwhelms buying. The cryptocurrency market has experienced several bubbles, notably in 2017 (ICO boom) and parts of 2021 (NFT mania). Recognizing bubble dynamics is important for managing investment risk.