When assets are known to be overvalued but the price continues to rise,the market exhibits

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When assets are known to be overvalued but the prices continue to rise, it indicates a speculative asset bubble. This is a situation where the prices of assets are driven by irrational expectations of future price increases, rather than by the underlying fundamentals of the asset. As more investors buy into the hype, the prices continue to rise, even though there is no real reason for them to do so. Eventually, the bubble bursts, and prices come crashing down as investors realize that the asset was overpriced to begin with.

When Assets Are Known to Be Overvalued but the Price