Bubble

A bubble refers to a swift and dramatic rise in the price of an asset, fueled mostly by speculation and herd mentality rather than genuine value. People keep buying, believing prices will keep skyrocketing, hoping to cash out later at a profit. This demand pushes prices even higher, detaching them from the asset’s true worth. Sooner or later, reality sets in—investors realize prices are unsustainably high. Panic selling follows, causing the bubble to burst and prices to collapse, often resulting in significant losses for many involved.