Well, I think, you just assume, you're just guessing. Do you really know that everyone only invests in the crypto market !? of course not!
Long story short, its great you have a diversification plan but also think about moving assets from crypto to fiat, stocks or raw materials and precious metals.
What is your view on that?
On the contrary, I think, people move assets from fiat, stocks, or other types of traditional investment to crypto. People put a small portion of their wealth in crypto.
I believe everyone here knows that they just put their money that ready to lose in the crypto market.
Yes, people started to understand the risk after the last price drop. What attracts the attention of many people is more profit.
Plus, diversifying your portfolio is always better. Instead of putting them all in crypto, you should divide among other sectors.