Crypto Bubble
The crypto bubble is a term used to describe the rise and fall of cryptocurrency prices in the market. It is also known as an economic bubble, which occurs when asset prices are driven up beyond their intrinsic value or fundamentals. This typically happens due to speculation, overexposure in media, or an increase in demand from investors who believe that the asset’s price will continue to rise. The rising prices can cause more people to purchase cryptocurrencies, further driving up their value until eventually it reaches a peak and then comes crashing back down again.
The first major crypto bubble occurred between 2013-2014 when Bitcoin surged from $13 USD per coin to over $1,100 before plummeting back down below $200 within months. This same cycle has repeated itself several times since then with varying degrees of severity each time around, but there have always been significant drops after periods of rapid growth that could be classified as bubbles.
It’s important for prospective cryptocurrency investors to understand what drives these bubbles so they can make informed decisions about which digital assets are worth investing in and how much risk they’re willing to take on during periods of high volatility like this one. Crypto bubbles often happen quickly and unexpectedly so it’s essential for traders and investors alike to stay vigilant when trading in such volatile markets by monitoring news sources regularly and following expert analysis where possible.
