From its peak of €800B, alt coin market cap today stands in low €400B and falling along with continuously falling price of BTC which is hovering around €8k now. This is real market crash, not just typical correction. People who invested like crazy in December and early Jan are now sitting in deep red with empty pockets. New investment money would be very hard to come by in coming days and that is one of the reasons why markets aren't picking up and remain stagnant.
I'll let you in a little secret... market cap doesn't mean anything. Sure some altcoins have crashed, because most of those are shitcoins, only made for pump and dump. And if dozens of those shitcoins, with crazy amount of supply crash, of course you'd see a huge decrease in total market cap, but that doesn't mean the entire market is crashing.
Also, people who invested in early January are not sitting in deep red with empty pockets, because it's STILL FREAKING JANUARY.