Bubble

In financial markets, the term Bubble describes a market situation in which investors drive up the price of an asset above its “real” value.

There have been several large Bubbles in financial markets in the past, for example:

• The Dutch Tulip Mania Bubble (Tulipomania) in 1633-1637
• The South Sea Bubble in 1711-1720
• The Japan’s Stock Market and Real Estate Bubble in 1980s
• The Dotcom Bubble (Internet Bubble) in the late 1990s
• The US Housing Bubble 2002-2006

Bitcoin critics argue that the price development of Bitcoin and other cryptocurrencies had Bubble characteristics in 2017/2018 and 2021.

See also: Cryptocurrency, FOMO.