What is the difference between asset bubble and market bubble?

What is the difference between asset bubble and market bubble Introduction: The Allure and Perils of Bubbles Hello, and welcome to our video on asset bubbles and market bubbles. Bubbles in financial markets have captivated investors and analysts for centuries. They offer the promise of extraordinary gains, but also the risk of devastating losses. However, not all bubbles are the same. Today, we'll explore the key distinctions between asset bubbles and market bubbles, shedding light on their unique characteristics and implications. Defining Asset Bubbles: Focusing on Specific Investments An asset bubble is a situation where the price of a particular asset, such as real estate, stocks, or cryptocurrencies, becomes significantly detached from its intrinsic value. This detachment is often driven by speculative buying, fueled by the expectation of further price appreciation. As more investors join in, the demand for the asset surges, driving prices even higher. The classic example of an asset bubble is the dot-com bubble of the late 1990s, where internet-related stocks experienced an unprecedented surge in value, only to crash spectacularly in the early 2000s. Market Bubbles: A Broader Phenomenon While asset bubbles are confined to specific investments, market bubbles encompass a broader range. A market bubble occurs when the overall market, such as the stock market or the housing market, experiences a significant and sustained increase in prices, detached from the underlying fundamentals.