Critics often label Bitcoin and cryptocurrencies in general as a bubble, comparing them to the dot-com bubble and predicting an imminent collapse. However, year after year, cryptocurrencies continue to develop, expand their use cases, and increase their total market capitalization. Still, one cannot simply dismiss these "bubble" narratives, as there is some truth to them.

This process indeed resembles the inflation of a bubble: during rapid growth, investors invest not because of the asset's intrinsic value, but due to future expectations and the fear of missing out on profits. It starts appearing more frequently in the news, attracting many newcomers eager to invest, thinking that the growth will continue - after all, if the asset has grown tenfold, why couldn't it grow another 2-3 times?

But then the growth stops, and the sentiment changes to the opposite: investors are gripped by fear of losing money, suddenly realizing that if the instrument has risen so strongly and quickly, the fall could also be catastrophic - and they rush to exit. Panic ensues, leading to a sharp decline - with periodic changes in sentiment as some investors expect growth to resume, resulting in pullbacks.