Glossary - ChicksX

Crypto Bubble is a market phenomenon where cryptocurrency prices rapidly inflate and then sharply deflate, resembling a traditional bubble.

Crypto Bubble is a speculative surge in cryptocurrency prices driven by investor enthusiasm, market sentiment, and media hype. During this period, asset values inflate beyond their intrinsic worth due to excessive speculation and herd behavior. This unsustainable growth often leads to a sharp correction or crash, as reality sets in and investors exit en masse. The bubble bursts when prices plummet, causing significant financial losses for late investors. Historical examples include the 2017 Bitcoin surge and subsequent crash. Understanding a crypto bubble is crucial for recognizing market cycles and mitigating risks in the volatile world of cryptocurrency investing.