A Bitcoin bubble occurs when the sentiment around Bitcoin is overly positive and causes everyone to FOMO in and buy it. This then drives the prices up in a bull market before sentiment changes and the bubble bursts, causing a sharp price drop known as a correction and possibly leading to a bear market.

You will hear many nocoiners and people spreading FUD about Bitcoin’s fiat price and the comparisons to “tulip mania” will be ever more present during a bubble. Conversely, a lot of moonboys will be parroting the opposite sentiment so be aware of both sides!

There are of course market cycles that occur and these tend to happen around the Bitcoin halving but as you discover more about Bitcoin and how it works, you can make your own mind up about what you want to read into the “Bitcoin bubble”.

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