A new Federal Reserve study reveals crypto’s wild swings aren’t just about tech or hype—they’re fueled by belief and behavior: rising prices lure in new buyers, who then push prices even higher, creating a self-reinforcing bubble. Surprisingly, most investors don’t understand crypto’s mechanics, yet crypto owners expect sky-high returns (22%) and see it as less risky than traditional assets. Even weirder? Crypto gains often trigger big-ticket purchases like appliances—like lottery wins, not real wealth.

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