Origins
Few English words work as hard as craft. It means manual skill (the craft of carpentry), intellectual ability (the craft of writing), deception (crafty), a vessel (aircraft, watercraft), and magical practice (witchcraft). All from one Old English word.
Old English cræft meant 'strength, power, skill, art, science'. It was one of the broadest words in the language — covering everything from physical force to intellectual mastery. The Proto-Germanic ancestor *kraftiz meant simply 'strength'.
The German cognate Kraft still carries the original meaning: force, power, energy. Kraft paper is 'strength paper'. A Kraftwerk is a 'power station'. The Volkswagen slogan 'Kraft durch Technik' means 'power through technology'.
Later History
In English, the word split along different paths. Craftsmanship preserved the 'skill' sense. Crafty took the 'cunning' path — someone with too much skill became untrustworthy. Aircraft and watercraft use 'craft' to mean a vessel — originally a small boat requiring skill to handle.
Witchcraft reveals the oldest layer: in a world where power and skill were barely distinguishable from magic, cræft could mean all three.