Very good reasoning.
Bitcoin is free market and this is actually great. Free markets obey supply and demand rules more transparently. And selling big stack of Bitcoins just trigger predictable consequences. So people who know enough of markets and trading had profited and dummies pay the price. As it goes:
Bulls are making money, bears are making money and pigs are slaughtered!
So folks it's education time! Educate yourselves about trading and crypto markets and volatility will be no problem any more. I'm just fine with it. Holes in my accounts teach me to manage my risk and use head instead of balls in trading.
I realize that reasonable profits over longer period are the right thing. the sooner people will learn that lesson, the better crypto world will bee. I think that is definitively possible to manage wealth in crypto assets and they are great because wealth is private and only yours and you have full control over your property in crypto.