Which filesystem do you have on top of the encryption? If it's the default btrfs that might be one factor. Have you tested using ext4? What is the make/model of the physical storage?
Mind you, I'm really happy with CachyOS, but I don't really understand why this is a problem and it doesn't seem to be an issue others are having.
sudo smartctl -x /dev/nvmeXXXX
Look at the temperature when you are pushing the IO really hard. Some devices will throttle when hot.Is this on a laptop? Do you have any indoor pets that have fur? Yaks shed a lot this time of year.
cryptsetup benchmark
though it's more useful if it was run prior on your previous OS installation. For storage, fio [1] may be useful but that is a much more involved topic and having baseline tests run in your former OS that you said worked fine.