speculative market bubbles

A speculative market bubble occurs when the prices of assets—such as stocks, real estate, or cryptocurrencies—rapidly increase well beyond their intrinsic value, driven mainly by investor excitement and optimism rather than fundamental factors. As more people buy in, hoping to profit from rising prices, demand fuels even higher prices. Eventually, when confidence wanes or realities set in, prices can plummet quickly, causing losses for many investors. Bubbles are driven by speculation rather than intrinsic worth, and their burst can impact economies and individual finances.