A market bubble occurs when the prices of assets, such as stocks or real estate, rise significantly above their intrinsic value, driven by excessive speculation and investor enthusiasm. This rapid increase often leads to a disconnect between the asset's actual worth and its market price, creating an unsustainable situation. Eventually, the bubble bursts when investors realize that prices cannot be maintained, leading to a sharp decline in value. This can result in significant financial losses for those who bought in at inflated prices. Historical examples of market bubbles include the Dot-com Bubble and the Housing Bubble.