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What is Bubble?

Crypto Terms Glossary: What is Bubble?

A bubble occurs when an asset rises to extremely inflated prices and then comes crashing down, settling at a level that's far less than its original price — typically a drop of 75% or more. It is usually possible to identify a bubble only after it has burst, and the price recedes. A speculative bubble is characterized by both the rise and fall occurring within a very short period.

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