The rule states that "90% of traders lose 90% of their funds in their first 90 days of trading."
What do you expect from newbies? That's why they called newbies. Their first 90 days of trading is a period of building learning experience.
Aside from that, 90 days is not even enough to know all trading fundamentals.
Yes, we can learned trading basics and able to form a strategy within 90 days but no one can avoid the wrath of volatility especially in crypto. What matter is, as long as traders will just continue to move forward, those losses can be minimized as they progress.
The expectations from newbies are not putting 100% of their money into anything. If they don't, and only put 5-10% of their capital, even if they lose 90% of that, that means they still have 90%+ of their money in their pockets. This way they do not lose all of their money. Of course this is very difficult to begin with, but it is not impossible to handle, we could have newbies acting more cautious and they could keep their money.
Even if they do not have any good trades and only lose, if they are not putting all their money into trading, they can still protect the base. This is what they don't do, most of them jump in with all they have, and because of that they lose 90% of their money very quickly in the first three months.