It's safe to say that most competent traders will stay while the not so competent traders will indeed leave the market after having lost a lot of money.... it also happens in the legacy markets where as always retailers suffer the most.

Overall, most traders always lose over a longer period of time, so even if the sentiment within a certain market changes drastically for the better, the freshly booked profits will never nullify the losses traders booked before that.

All you need in crypto is chart to trade.... fundamentals are meaningless because the price will reflect whether a project has great or poor fundamentals, which traders then trade until their markets become too illiquid.