While this is an altcoin kind of stuff, but it does affect BTC regardless of how anyone thinks, BTC as it stands right now is a high-risk speculative asset, the average joe and his grandmother don't really know the technical differences between a solid ecosystem like BTC and a shitcoin like Luna, and thus "confidence" is gone, and it will take time to recover what has been broken.
What I find also true, is that during this bull run, the average joe and his grandma heard about bitcoin, and learned that it did actually proved to be a good investment. We are going full bear now, but given the following recession, inflation, war, energy crisis, and whatever else, the next bull run could be the perfect storm of these events which could lead to grandmas buying btc.