I don't buy the drugs argument.

Drugs are more expensive as as a result of government intervention because the demand for them hasn't gone down, but supply has. Their utility is the same as it always was.

Bitcoin's utility goes down the more difficult it is to obtain and use as a result of government intervention. So demand drops as well as supply (in the US at least). The ultimate effect on price is thus difficult to determine, and will be a result of the form any intervention takes, and the opportunities to use it cross border that remain.

Different story, entirely.