Crypto is new, so it's mostly recognized by early adopters - people that are more likely to change their mind in the changing circumstances. There's also a lot of the "get rich quick" crowd, money laundering, illegal purchases, and other activities there, but these are all the factors that support the price of crypto.

So yes, it's extremely volatile. Yes, its price depends on the mood of lots of moody people. But it's still a valid commodity backed by human greed.