THE current consensus from recent sources is that the cryptocurrency market displays many signs of a bubble, characterised by rapid price increases driven largely by speculation, hype, and institutional involvement, with unstable fundamentals underlying these valuations.
The term “crypto bubble” refers to when cryptocurrency prices, such as Bitcoin and Ethereum, soar far beyond their real intrinsic value, often fueled by speculation, media hype, and the fear of missing out among investors. Key indicators include extreme price volatility, sudden spikes in trading volume, a new flood of crypto projects without clear value, and a market sentiment dominated by greed.
Bitcoin recently surged to record highs of over $120 000–$160 000, driven by institutional adoption of crypto ETFs, corporate treasury investments, and political support, particularly from the US administration. However, experts warn…