You're right that the current price (always) matters. But on the other hand, it matters only for the one who will buy or sell. If one decides to just hold for long, simply because he's no longer a good trader, or has never been, the price is just something not-really-relevant, which has a better chance to make him die of hearth attack before he gets to enjoy the returns of the investment. Or makes newbies panic sell (same newbies will be disappointed now, but may buy again when FOMO bubble is nearly at peak again).
I would say that it doesn't matter temporarily or for the time being.
Even the persons that hold, they hodl till a moment when the price becomes attractive to sell, I doubt that when
BTC (big if!) hits 1 million too many will keep saying 1btc=1btc and more like 1 btc =5 lambos! Or rather than going through long explanations or scenarios, how about, "everything has a price".
. There will always be either a price or a moment in life when everyone will simply say, f*& holding, I'm rich!
As for the newbies part, that's one of my biggest concerns when I'm entering bear mode.
If newbies get continuously scared by price dumps and they get fleeced in scams or pump and dumps schemes there is a moment when the inflow of users will start shrinking, and with a limited userbase there comes a limited fiat injection, and, you obviously can guess the end result.
That's why I'm always frowning and not cheering when I see talks about "weak hands/ cheap coins" and stuff like that.