Bitcoin’s price approaching $95,000 in early 2025 has brought renewed attention to Peter Thiel’s bubble theory. Thiel, the PayPal co-founder, discussed his framework for identifying market bubbles at the Yale Political Union in October. He highlighted three indicators: extreme abstraction, unsustainable exponential growth, and psychosocial insanity. This insight is especially relevant as the crypto market reaches new highs. Thiel’s Founders Fund invested $200 million in Bitcoin and Ethereum in late 2023, but he later expressed skepticism about Bitcoin’s future growth. Despite this, PayPal continues to expand its crypto offerings, reflecting Bitcoin’s transformation into a mainstream financial asset.