Crypto currency in general is highly impacted by adverse news as well as government regulations.  Since the market is immature with many smaller investors this tendency is especially pronounced. 

One benefit of increased regulation is the arrival of larger investors into the space (Soros, Rockefeller to name a couple). 

This should stabilize the market and ultimately lead it higher. 

Investors that continue to hold and invest in promising projects should see large returns in this space.  There will still be volatility but will likely not be as pronounced as it has been the past month or so.