Diversifying is a new meaning when it comes to crypto currency. Alot of crypto coins out there now. is it the generation of diversifying your portfolio. Now the average investor don't have to invest in Bitcoin if they don't want to. They got dapp coins. Privacy coins. Cloud coins. So many coins. U don't need to invest in one place anymore. Any bull run can give u net gains of over 2000% in a single night. Only if targeted by luck.
You do not need to invest into many things in crypto, all those dapps and privacy and cloud and whatever are just crypto currency all together and they usually all move together as well. In stocks when you diversify your portfolio the reason is that apple stocks go up while microsoft goes down or exxon could go up while berkshire goes down.
Basically in stock markets the reason is that you have 50+ different stocks which would help you never lose money from just a single company doing something bad and bankrupting themselves. Are there market crashes like we had couple months ago? Yeah sure there are but they are once a decade so its fine for the investors.
All the above, on crypto, if bitcoin goes down all goes down, if bitcoin goes up it all goes up, hence diversifying doesn't really matter as much as it does in stocks.