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I'm trying to work out how a small interest rate increase can destroy the whole crypto market like this. Interest rate increases aren't rare and were pretty normal.
I think there is more to this than the "interest rate" excuse.
What really scares me though is that for the last x amount of years and especially over the last 2 years, governments have been recklessly printing money, which is effectively stealing via inflation. The insane amounts of money printed has mathematically created a situation where mass poverty is now unavoidable through out of control inflation. Combine this with the increase in taxes and interest rates, in the coming months and years, people won't have any money to put in to crypto, thus, I think the gold rush is now over for all cryptos permanently. They might even use the crash to outlaw it globally.
So although I don't believe this drop is because of interest rates, but rather, banking manipulation to screw over the crypto markets, I think for the other reasons, which are still in the future, it will make crypto a difficult market.
However, when the banks start doing their bail ins and governments start banning crypto, I think this will scare a lot of people in to privacy coins - if they look trustworthy. So it might not be so bad for this market.
However, at the end of the day, if people were using crypto as intended and not as an investment/get rich quick scheme, fiat wouldn't matter. Unfortunately, because of this, everything you need to live on, still relies on the value of fiat.