Chinese government can actually create panic and cause amateurs traders to sell there coins to whales but it cannot banned bitcoin as bitcoin is universal. I think bitcoin should be using as world currency as it represents perfectly the idea.
That's what going on in the market right now. Panickers already left the train and they're crying now at home. That was a mistake to sell bitcoin during that chinese crash.
If you really adopt bitcoin, you can hold even in bad times. Because you know the future is bright.