Why do bubbles fade?

Why do bubbles fade? This question often arises when we observe the volatile nature of cryptocurrency markets. Bubbles, by definition, are temporary distortions in asset prices, often driven by excessive speculation and a lack of fundamental support. But what causes these bubbles to deflate? Is it a shift in market sentiment? A fundamental change in the underlying asset? Or perhaps a regulatory intervention? Understanding the reasons behind bubble fades is crucial for investors and policymakers alike, as it can help mitigate risks and inform future decision-making. So, why do bubbles fade? What are the key factors that contribute to their demise? Let's delve into this intriguing topic and explore the answers together.