What's different this cycle is the memecoin noise draining liquidity from solid projects. Most "influencers" pushing random shitcoins are ngmi when the rug pulls come. The quality gap is widening trash projects dying faster while legitimately useful alts are building regardless of price.
Liquidity fears the uncertainty, mostly, and, as always, most of the money still goes to the bigger caps and the ones that deserve it the most.
Only then it goes to alts, and then - to things that have only hype, no utility at all.