What is a “bubble,” in broad terms?

A financial bubble occurs when an asset’s price becomes decoupled from its underlying fundamentals (utility, cash flows, real demand) and is driven largely by speculation, momentum, or excess leverage. When confidence falters or liquidity tightens, corrections or crashes tend to follow.

Why it might not be a classic bubble (or yet)

1. Institutional adoption and legitimization

   • ETFs and large financial players have increased access and credibility for Bitcoin. This broadens the investor base beyond speculative retail. 

   • Corporations holding Bitcoin on their balance sheets add a “structural demand” element that could support higher valuations.

2. Scarcity / monetary design

   • Bitcoin has a hard supply cap (21 million coins). Unlike fiat currencies, it can’t be “printed.” That scarcity is a central part of its value proposition.

   • Some valuation models (e.g. cost-of-production, or marginal cost models) argue that a “floor” exists below which prices are unlikely to fall sustainably, even in corrections.

3. Evolving fundamentals / infrastructure growth

   • The crypto ecosystem is continuing to mature: better custody solutions, regulatory clarity in many jurisdictions, more institutional-grade infrastructure.

   • Some argue we may be in a “speculative growth phase” rather than pure mania, meaning volatility is expected but the trend may not be as reckless as past bubbles.

4. Bubble features may not (yet) be fully in overdrive

   • The level of public euphoria, media frenzy, or “everyone’s getting in” mania — hallmarks of many historic bubbles — are arguably not (yet) as extreme with Bitcoin (though that could change).

   • Some analysts say that because institutional participation is still scaling, the market is not yet in its final blow-off top.