Interesting take and I agree with you, the new money in the market has unrealistic expectations regarding crypto. Also most people came way too late to the party, bought overpriced coins and ICO paper tokens on hype as "investment" as the market was about to deflate.
The real problem in my opinion is: 1) ignorance of basic market principles like market cycles, trendlines etc. 2) YOLO YouTube "traders" offering investment advice and shilling overblown coins and tales of getting-rich quick.
Greed created this bubble, fear will deflate it and I'll be buying the dumb money's bags at the bottom you can count on it :)