People decide on a narrative ("crypto is bad and a scam" in this case) and they will see the world in a distorted fashion in order to fullfil their narrative.

People decide on a narrative ("crypto is bad and a scam" in this case) and they will see the world in a distorted fashion in order to fullfil their narrative. So they see a significant drop in price, but completely within the bounds of previous drops, and they see it as full meltdown and the ponzi scheme popping, because that fits their narrative.