Not exactly correct. While the global crypto market cap is currently around a trillion dollars (and was higher in the recent past), this is vastly different than it being the case that a trillion dollars was invested in crypto (i.e., "siphoned out" of the rest of the economy).

In fact, according to one estimate, in 2021 global crypto investment was $30.2 billion [1]. (I don't quickly see estimates for 2022.) For comparison, US gross private domestic investment across all industries was $4.1 trillion in 2021 [2] and globally it was several times that. While $30 billion is nothing to sneeze at when considered on its own, crypto investment is a rounding error when compared with global investment.

[1] https://home.kpmg/xx/en/home/media/press-releases/2022/02/to... [2] See Table 1.1.5. Gross Domestic Product at https://apps.bea.gov/iTable/iTable.cfm?reqid=19&step=3&isuri...