I think the core of the problem is that it's very hard to value blockchains. How much are they really worth? The price is based on our expectations about the future. Which makes it highly speculative.
The same thing happened with technology stocks in the dotcom bubble. They went through different cycles of euphoria and fear. But the reason of the volatility is because investors can't make much sense from it. Because an efficient market wouldn't behave that way.
Take for example a company like coca cola. The price of the stock is based on how much revenue it generates, which is quite steady. But companies that don't make any revenue yet are much harder to value. And blockchains are even worse because it's still so new and technology keeps evolving fast.
Thats why i think that ta works better than fa for trading cryptocurrencies. The crypto market is very sentimental, the fundamentals only matter long term.
