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What caused the dot com bubble?

The dot-com bubble and the dot-com crash thereafter was fueled by a combination of speculative investing, market overconfidence, investors’ fear of missing out, an abundance of venture capital funding, and the failure of Internet startups to turn a profit. What was the timeline of the dot-com bubble?

Why did the dot-com bubble burst?

The dot-com bubble of the late 1990s and the current startup environment represent two distinct periods in tech investment. The late ’90s saw rampant speculation in internet companies, many of which lacked sustainable business models, leading to the bubble’s burst.

What happened to the stock market after the bubble burst?

Equities entered a bear market after the bubble burst in 2001. The Nasdaq, which rose five-fold between 1995 and 2000, saw an almost 77% drop, resulting in a loss of billions of dollars. The bubble also caused several Internet companies to go bust.

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