What is Bubble?
Bubble meaning and Bubble definiton
A financial bubble grows but eventually pops and leaves everyone who invested or HODL-ed almost moneyless. Since its inception, Bitcoin had around 4 bubbles.
Speculative bubbles work very much like an infectious disease. A bubble starts with a very limited number of participants. New buyers are drawn to the "overnight" increase in price and they start investing themselves. As fast as the price goes up, the more people are expecting it to grow and buy even more at even higher price. Eventually the market runs out of potential HODL-ers and the price rise slows. Once it starts to fall, everybody looses hope of big gains and start to sell and the market becomes bearish pushing the price to zero.