The crypto market isn't essentially or intrinsically affected by the situations of other financial markets. The reason it is being dragged along is that many investors trade on multiple markets (together with many other factors). They usually move assets here and there but sometimes they scrape off multiple assets into their pockets all at once. Some of them treat their crypto assets as a lifejacket, which keeps them afloat when the rest of their assets are sinking. Dependence on crypto usually entails increased sell-offs.

Just when we thought things are starting to quiet down and getting ready to swing back, the Federal Reserve announces that they will raise interest rates and tighten their monetary policy to combat inflation, landing another strong blow on the already beaten financial market. And we're likely to see more interest rate increases in the future until they bring inflation under control. One expert says that if economies don't hold up amid these hikes, Bitcoin's price might plunge further to about 70% of its current price, which is about $8000.  

But of course, the Fed is careful not to trigger a full-scale bear market that will take years to reverse so they'll jack up rates slowly to allow economies to grow simultaneously. Aggressive hikes are out of the question. Raising interest rates help slow down the economy. When the economy reaches a point tolerable for both consumers and providers, it will start increasing its pace again. This will hopefully prevent any unwanted trends in the crypto market.

But like every bear market we've faced in the past, this situation is temporary. No matter how low Bitcoin's price goes from here, it will recover. That's because the only issue big investors have with Bitcoin and crypto, in general, is that they are, in the words of ECB chief Christine Lagarde, "worth nothing." And this can be solved by creating an ecosystem where people get used to using cryptocurrencies for transactions and are confident they will hold their value, which can be achieved with additional technological advances. If there's one thing humans are good at, it's creating technological advances. So we are heading that way no matter what.