The answer is that the Fed's latest comments are indicating that they are going to continue to raise rates and attempt to fight inflation, regardless of the stress it puts on the economy. They will attempt to destroy demand to control inflation (which is actually the right thing to do, they just caused the problem to begin with). Increased rates will reduce capital liquidity for both businesses and individuals. This results in reduced earnings, which results in job losses as well as dropping stock values. As much as bitcoin is its own thing, it's still correlated to the markets, and as liquidity dries up, people will sell to make ends meet, pay down debt, or just to switch to cash to hedge against expected further market value decline.