Most of the people are net debtors in fiat terms. Whether fiat's value increases or decreases vs. their income, is more important to them than how they invest their free money that they can afford to lose. In the optimistic case, all debts are effectively cancelled. In the pessimistic case, all debtors are foreclosed (as the effects of the CB policy to pop the bubble by raising interest rates and causing unemployment), and bitcoin people get to buy their assets for cheap, but this may cause indignation. AnonyMint thinks that crypto holders will be declared enemies of state at this point and eliminated.
The state is going to have a hard time doing that. Unless this all happens very soon, it will be impossible to identify holders of crypto by then. As technology advances it only gets easier to integrate zero knowledge proofs without overloading the network.
But even if they can identify and kill the holders of crypto, that doesn't guarantee capture (or loss) of the private keys by any means. Any reasonable billionaire would prepare for this eventuality and pass on his keys. So the state has only one option left then, to blacklist coins, destroying the fungibility of this currency they're trying to sell everyone on? Not going to happen. If you are trying to convince people NOT to use a currency, threatening them with death by accepting the "wrong" coins is a great way to do it.