Can you tell the difference between marketcycles and a failure? You obviously can't.
You had millions invested - they will not be invested again after this.
I'm not sure what's going to happen (disclosure: I'm biased to the bullish side simply because I have some BTC and hope it goes back up). But I disagree both with your second statement and with its relevance. Just because people got burned doesn't mean they won't be back, even if they swear they won't. If things start looking positive again, at least some will be back. That's the nature of greed. You also have new "generations" of investors who maybe didn't know much about bitcoin before and are now getting into it. Additionally, you don't need millions of investors. All you need is investors with millions. With bitcoins worth hundreds of dollars, the whales move the markets, not the little guys.