It has resulted in the downfall of the bitcoin market value but now it is recovering as the user has changed their exchanges to other foreign . I feel it as a loss only for that nation as they tried put an end for the thing which has given them lot of profits as we all know there are lot of miners from china who are active users of bitcoins as they used have the lowest electric charge.
I think the problem is, that China, despite having many users with BTC, does not really control them, and does not even ban them. So BTC will continue to be a good way to maintain value. So the price will go down a bit, and they will only recover, because people who know the true value of BTC, will only hold them all over the world.
I do not think this is anything new. If I am not mistaken China has done that in the past. I think that of course will affect the price of BTC, because all sellers are panicking, and all that just use BTC to trade.