What will the space look like in 2 years if the market continues to react this way to good vs. bad news?
Well in the future considering that cryptocurrency is a growing market volatility will be really big as when the market grows the bigger the influence to the 2nd movers it will be. Even if the government will try to have their own cryptocurrency market or have a regulated market it won't stop every bad news as it still affects the market because of it being a FUD. Put together a down trending Bitcoin chart and FUD in several countries it will create a recipe for disaster in terms of Bitcoin's price.
Also what will need to happen to finally push this the other way? Although yes I know that the market is actually just correcting after a huge parabolic rise and this is normal. Just wanted peoples thoughts on this...
Not unless all of us will be buying up Bitcoin, I don't think we can push it the other way. Because Bitcoin being an unregulated cryptocurrency it will always depend on the whales where they will push it.