Things that go up for no apparent reason can come down for no apparent reason.
Many of the previous sharp increases do have explanations, e.g. the $150 to $1,500 rise was largely due to manipulation by the Willy and Markus bots[0], the $10,000 to $20,000 rise was largely due to manipulation by Tether and Bitfinex[1]. Will probably take a while for the dust to settle to see if any manipulation was responsible for the recent rises.
[0] https://www.investopedia.com/news/bots-drove-bitcoins-150to1...
[1] https://cointelegraph.com/news/research-tether-bitfinex-mani...
Stocks have companies who are producing actual value.
That's part of my point. Fiat had decades to stabilise, digital currencies are basically newborns so it's not fair to expect them to pop out already matured and stable.
> Stocks have companies who are producing actual value.
Unless they don't (or their value is decoupled from meme/insider manipulation that artificially controls their prices), like GME or Tesla.
That said, I agree that bitcoin price is kind of a bubble, and something that is pumped and dumped by people with a lot of money to the detriment of those who saw it as a miracle savings investment (usually people with little financial education) or those who truly believed in it (I think those became a small % of the users a long time ago).
Maybe Elon is the trigger for the 30% drop over the last few days... but remember he didn't announce his initial holdings until mid-February 2021, which was after the 5x surge. If anything his timing was awful.
Everything in hindsight is pure speculation and rationalization. Nobody has a clue, markets are complex, volatile and full of irrational actors.
There is no doubt hedge funds are playing in this space with lots of money and skills to extract maximum value from the joe shmoes
People didn't cut nearly half a trillion dollars from the value of bitcoin on the word of a person known for blurting out impulsive and weird things. He didn't reveal any deep new insights into this thing. What Musk said just spooked the herd, that's all.
Shame it can't be calculated.
https://www.ft.com/content/c4c29bb3-c8ee-454c-a2dd-eac9f6440...