Economist Hyman Minsky identified five bubble stages:

• Displacement — a genuine innovation or opportunity emerges.
• Boom — prices rise and early investors profit.
• Euphoria — everyone piles in and skeptics look foolish.
• Profit-taking — smart money quietly exits.
• Panic — prices collapse and everyone rushes for the exits at once.

Euphoria is the most dangerous stage. As friends and neighbors seem to get rich without effort, the social pressure to join becomes almost impossible to resist.