A good look into trader psych is Taleb's "Fooled by Randomness". All of this predates Bitcoin, though I'd argue the open nature of cryptocurrency allows for people with "extraordinarily active imaginations" (let's say) to participate.
He put a lot of effort and research into his analysis of the market and was sure he understood it well enough to bet big. He failed but luck saved him and made a killing. His boss told him not to tell anyone, ever, and then promoted him. His boss was also promoted for his 'talent' in managing a successful team.
The student was self-aware enough to realize he failed spectacularly and left the fund, but many aren't. Cognitive dissonance is rampant in the financial sector and with bitcoin everyone feels like a stock-broker, it's a dangerous game if you let your ego dictate your strategy.