Wholeheartedly agree with this. But the question is, is now the right time to be applying this graphic? Now, this picture of "valuation phases" has been circulating around internet/reddit since BTC hit 1700 for the first time. 2000 for the first time. 4500.. etc.

And even then, the same reasons as you've outlined have been used to explain the correction. I'm by no means discounting the merit of what you're saying. It's 100% true. But I guess the conversation of "who is everyone in the trend?" is a matter of perspective. And the answer to this question, is really what drives your forecast of when this party will be over.

From the loosest understanding of investment participation, there's only a small fraction of people who have heard of, no less, invest in crypto. So there's lots of room to grow. Now if we minimize our window of "everyone" to the financially literate? People who like speculative investments? People who just like to gamble? Then I think we are definitely approaching the mania phase - though I certainly don't hope so.