I suppose there are a few different ways to look at this...

Bitcoin was created by design to cause a disruption to normal fiat, currency, and asset classes.  War and uncertainty is inevitable and in fact required in the process.  The Chinese government has the power to easily turn things on and off.  Especially something they can't regulate, tax, or control.  Why would they not do this???     

The shutdown of any exchanges means that bitcoin is disruptive and actually succeeding in what it was intended to do!   Get ready for more of this all over the world in the coming months and years.

The verdict is still out if bitcoin will be allowed to survive in public and truly be worth anything.  That could take decades and which is why any crypto is still very risky.   But I see the adoption by Japan as the biggest victory yet.   Each country will need to decide how to handle, but the long term decision of whether it lives or dies will most likely end up in the hands of the United States.  (As usual...)  Where the citizens ultimately decide on what is legal or not.   Most likely it will end up being taxed and regulated, but that court case will be the deciding day if a bitcoin is worth $100 or $100,000.