That's happening because crypto 'value' doesn't exist in a vaccuum, immune to the vagaries of the tradFi markets. When shit hits the fan, credibility matters. That's why traders park cash in government bonds when a market sell-off happens; a government bond essentially guarantees you get your money back quickly when you're ready to go back into the markets.

The recent moves by the administration have been so incompetent as to tank the bond market as well, thereby leaving few safe harbors. And no harbor is less safe than crypto.