It doesn’t necessarily prove that the investor has faith. Out of the people who have invested at ATH, a handful of them are people investing out of FOMO. They don’t really believe, they are just scared that they will be filled with regret if the rocket actually leaves the sky as people hype it. But those who are really long term investors are safe. As long as they are committed to it and don’t eventually have weak hands.
There are many things like that, but for BTC there is nothing wrong with buying it in fomo conditions but not in other conditions. Even if the price drops after buying BTC, it will quickly rebound again. what we are afraid of is for other coins which may not necessarily perform that way.
In a few days time there will be a Halving, I think market sentiment and further adoption will happen quickly, but what we will see after that is that it will continue to rise or there will be a temporary reversal.