What speculative bubble burst in 2000, beginning the dot-com crash?

The speculative bubble that burst in 2000, beginning the dot-com crash, was the dot-com bubble.

The bubble formed around internet-related companies during the late 1990s. Investors were attracted by the possibility that online commerce and digital services would transform business, and many companies received very high valuations despite limited revenue or no profits. Venture capital funding and initial public offerings helped accelerate the boom.

The Nasdaq Composite reached a record closing level of 5,048.62 on March 10, 2000. It then declined sharply as investors reassessed technology valuations, rising competition, and the difficulty of turning internet traffic into sustainable earnings. The Federal Reserve's interest-rate increases also affected speculative assets.

The crash did not eliminate the internet economy. Many heavily indebted or unprofitable companies failed, while firms with stronger business models survived and later expanded. The dot-com bubble is often confused with the 2008 housing and credit crisis, but the two episodes involved different assets, institutions, and economic mechanisms.