Counterintuitively crypto is good for this low liquidity environment because the space is so small in the grand scheme of things.
Despite money being tight at the moment, there exists an immense desire for retail traders to speculate, as we are in the later stages of a long cycle in risk appetite. Liquidity has a tendency to flow towards corners of the market where it can have an impact. There are fewer than 10 viable coins and it doesn't take much to move them.
In terms of the competing destinations for flows: gold has been challenged for a while now and AI is weighed down by concerns around financing availability and model-level pricing power.
It is hilarious and upside down that crypto would be the beneficiary of these conditions but it also makes sense in a strange way. At the end of the day, crypto is a tiny financial playground that is driven by the memetic consensus of a narrow group of people. In that sense it can transcend broader macro conditions.
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