Trading financial instrument , derivatives have high risk , and having full knowledge of risk management of position size is a key to make a quality decision. The fundamental impacts news can make you rich or rekt you especially when the hype in social media get built up. Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into. These is my view why many lost during this Bitcoin decline.
I believe it is not that simple. Mainstream media do not talk about crypto all that much every single day during the calm moments, when bitcoin was around 5-7 thousand dollars did you see all those online places, hypes, tv news and many other things that talked about bitcoin? You didn't, why? Because it wasn't interesting, whereas having bitcoin at 40k was super interesting.
This is why I think it is quite obvious why people end up with this kind of behavior, not because they want to get in after they see it go up, but because there is a huge hype all over the world because it went up and they want to be a part of it as well if they can, they didn't check it out because it wasn't news and non-crypto people do not really feel like checking crypto prices everyday normally, but when prices hit this high levels they do end up with checking it out.