If the NASDAQ goes down, BTC follows. As I said a few months ago, I don't like this behavior. If BTC is supposed to be the hedge against inflation it should not be so volatile.
Also, the more expensive it becomes, the harder it is to justify as an investment. When I buy something that can drop 10% in one day I expect a big upside potential as well. Can BTC double from current prices as easily as it did from 5k to 10k for example ?
BTC is an inflation hedge so far for folks in Argentina, Turkey, Nigeria, etc that have massive inflation. The developed world hasn't seen serious inflation since the 70's so for now it's abstract for most people.
The more expensive it becomes, true, the theoretical upside is lower, but the institutional adoption accelerates and it becomes more of a mainstay and harder for the government to ban.
Right now risky speculations are crashing because yields are rising - higher yields make it costlier to borrow to speculate, and make safer investments like U.S. treasuries seem more appealing in comparison. The Fed will have to step in eventually to cap yields but in the meantime this can get ugly.
The volatility is inevitable as you see the dawn of a new asset class come into maturity. It will not be a smooth ride so just get used to it and position size appropriately if it's keeping you up at night. Sorry that's just how crypto is - if you want the benefit of the upside you'll just need to build conviction to withstand the volatility.