Bitcoin is a niche product, only few people are aware of it as an investment alternative. The direct impact of China news on Bitcoin prices is greatly exaggerated.
So I don't expect a rise in BTC price because of it. Even if the scenario you are pointing out becomes reality, restrictions for Bitcoin purchases would not succeed on a large scale, because you can't ban p2p trade.
This. A very few people know about bitcoin and it is unregulated in places like China precisely because so few people are using it to move money. If it suddenly became genuinely popular, they'd ban it in a heartbeat.