Crypto Bubble: Are We in This Phase Now? Find out the answer here!

Updated

June 19, 2025

Gambar Crypto Bubble: Are We in This Phase Now? Find out the answer here!

Jakarta, Pintu News – Since their emergence more than a decade ago, cryptocurrency prices have shown high volatility. However, a significant price increase occurred after the re-election of President Donald Trump, who promised to adopt crypto-supportive regulations. This prompted the price of Bitcoin to surge past $100,000. However, there are concerns among investors whether this is an indication of a crypto bubble.

Crypto Bubble Symptoms

Identifying a crypto bubble is no easy feat. Since their inception, cryptocurrencies have exhibited bubble-like characteristics, such as limited usage and a lack of cash flows that support their intrinsic value. However, it is undeniable that these prices have increased significantly.

Rapid price spikes over a short period of time can be an indicator that a particular cryptocurrency or in general is in a bubble. For example, Bitcoin’s (BTC) price spike to $100,000 within a few days indicates a potential bubble. Investors should be wary of these unnatural price movements.

Also Read: Ethereum (ETH) Prepares for a Surge: Bullish Signs Strengthen

Memecoin and High Risk

Memecoins, which often appear as a joke and gain huge attention in a short period of time, are particularly prone to bubbles. Memecoins such as $TRUMP and $MELANIA launched by President Trump and First Lady Melania Trump, have reached high market capitalizations before eventually falling more than 75% from their peak.

These memecoins attract a lot of speculation and social media attention, which can accelerate bubble formation. Investors who buy these assets are taking a huge risk, as these memecoins often have no clear basis or purpose other than speculation.

Self-Protection Strategy

There are several ways to protect a portfolio from a potential crypto bubble. One of the simplest is to simply not own any cryptocurrencies at all. However, if you choose to invest, it’s a good idea to avoid highly speculative coins. Limiting exposure to crypto to a few percent of the overall portfolio is also a wise strategy.

If exposure to crypto is more than 5%, consider selling some to protect yourself from potential losses. Consultation with a financial advisor can help develop a strategy that suits your needs and risk tolerance.

Conclusion

Investing in cryptocurrencies offers the potential for great returns, but also a great deal of risk. Understanding the characteristics and risks associated with these investments is key to protecting yourself from potential losses that could occur at any time. Making wise investment decisions will help maintain financial stability in these uncertain times.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.