The 1637 Dutch speculative bubble often linked to an early market crash was called tulip mania.
Tulip mania describes intense speculation in tulip bulbs in the Dutch Republic during the 1630s. Prices for some rare bulbs rose dramatically, and contracts changed hands among traders who hoped to resell at higher prices. In early 1637, confidence weakened and the market fell sharply.
The episode is frequently presented as history's first famous speculative bubble. Modern historians caution that later retellings exaggerated its scale and its effect on the Dutch economy. The evidence supports a concentrated speculative market, not necessarily a nationwide economic disaster.
Tulip trading also differed from a modern stock-market crash because tulip bulbs and bulb contracts were the assets involved. The story remains influential because it illustrates how expectations and herd behavior can push prices far beyond ordinary use value.