Is destruction of crypto wealth a beneficial factor easing inflation?

Bitcoin and Etherium futures trade there.

If it's really the upper income and other folks who have gobs of money that are keeping inflation high. If you have a ton of money then you are less prone to being impacted by inflation. Who cares if gas is $8/gal and your vehicle gets 10mpg when you've got millions in the bank or some other easily accessible source of money? If there are enough folks of means who are not impacted by inflation they won't cease consuming because of high prices alone. Inflation will continue unabated while high interest rates and prices crush folks of lesser means.

And some say the rise of crypto is a direct result of decades of low interest rates and easy money policy. Under these circumstances, people can throw their money into projects with dubious returns. High interest rates and more cautious loan granting effectively weeds out the crack-pot business models. Tight money may prune the dead wood and allow more projects that actually produce a useful project to move forward.

Theoretically, inflation is caused by too much money chasing limited goods & services.
In this case, there are other factors, much of it being overreaction to extrinsic events by underregulated commodity markets. And, opportunistic greed.
But, as I understandit, much of crypto investment is long-hold, or at least traded within the crypto world.
Hence, only a small fraction is actually circulating into & out of the overall economy.
I'm not seeing how this loss of investment value impacts the fundamental causes of our current situation.