The news in term of development are actually decent, with LN getting closer to a release, so I think this is just temporary. 
The downfall is a temporary event came with bitcoins and this one happens due to some fuds scattered, the big one is the google banning the crypto ads which totally hurt the whole cryptocurrency ecosystem. But surely the price and the cap will recover soon and we will see the massive pump coming on future.
You are right because of this frauds projects that keeps on coming affect also the reputation of Bitcoin and does many investor prospect are having a second thought to invest because they are afraid to be scam.
For real, that could be even scam ICOs undermining market a bit. But I tend to think the market is bullish right now, bulls want to get it back to 8200-8600$ mark.Don't forget all that loud assertments about BTC being a bubble this week)
Bubble mean when it pops it mean nothing more, you can't see it or feel it anymore so I dont agree with you with your "bubbles this week" statement, I say you can see BTC is being corrected a lot this week.