Market Euphoria

Definition ∞ Market Euphoria describes a state of excessive optimism and irrational exuberance within a financial market. It is characterized by rapidly rising asset prices, widespread investor enthusiasm, and a disregard for fundamental valuation metrics. This condition often precedes a significant market correction or downturn.
Context ∞ Discussions regarding Market Euphoria in crypto often arise during periods of rapid price appreciation across numerous digital assets, accompanied by significant media attention and public interest. Analysts are assessing whether current market conditions exhibit signs of unsustainable speculative fervor or are driven by genuine technological advancements and adoption. Identifying the peak of such sentiment is critical for risk management.