Strengthening the US dollar creates effects on the currencies of developing countries. In addition, currency depreciation continues to cause foreign exchange reserves to erode. This has caused an increase in the amount of credit for countries that need large amounts of external spending. Some of the countries most vulnerable to the US dollar are Argentina , Sri Lanka , Turkey , and Zambia. And predictions say the US Dollar will continue to strengthen until the end of the year. Like Chile, Colombia, Indonesia and Malaysia are also vulnerable to digital currency conditions, even though these countries have financial and institutional buffer systems that are able to erase in the short term. One news that is enough to be a shock to the currencies of developing countries. Apart from this, I think this has an impact on digital currency movements which I think are slow and watch stagnant.
The US dollar is the base currency of the world just like how Bitcoin is the base currency of the crypto world. In times of uncertainties capital gets parked in that what is globally accepted to be a safe haven, which in the legacy world is either the US dollar or Gold. It makes sense as well, especially with how most of the money in the world isn't being used as money, but as speculative vehicle.
I'm not sure to what degree it is influencing crypto currencies, but it might play a role of importance with how we have more institutional presence than ever before. On the other hand, people need to understand how the crypto market cycles through various phases, and as what happened multiple times already, a bear market like we experience right now is pretty common and organically results in long periods of stability and stagnation.
One spark is enough to get this market up and running again. Right when people tend to get too comfortable with the market, it pulls off something that brings back fear/greed/uncertainties, etc.