New investors, they always look at Bitcoin and think, "oh it's too late", then they look at a couple alts, they find them too developed to get the x1000, so they will search for whatever brand new promise, that's where the most dangerous bubbles happen.
Not entirely. If we follow the blind chicken gang supporting XRP, which is one of the largest altcoins in this industry, they seriously believe that it may reach $500 to $1000 per token.
It's entirely ridiculous, but people only seem to pay attention to the single token or coin value, which in case of XRP means $0.30 per token. It's easy to buy into and a few hundred bucks worth of it buys you a lot of coins.
People's main obstacle with Bitcoin is its higher price. They don't want to buy 0.15BTC with $1000 of their savings, but thousands of smaller coins. It's a psychological matter in the end.