Yesterday all crypto was almost red, this situation was getting worse because we were in Q1 for the new year. regarding your statement about the plan to use crypto as a financial transaction, I think indeed the state will only support one coin that they support, and may not have a big impact on the overall market situation. unless they support 100% bitcoin.
The most significant problem right now that the market keeps falling is that we don't have any positive news with regards to the regulation system that countries establish and set barriers to the market. If there were some countries that would relieve their policies then people will start buying easier and bring some capitals in the market.
It is still awaiting and most likely if the country provides a good policy, a positive impact will be seen, but there are still many countries that remain in their position on crypto. The market remains red and this makes many investors more resilient and vacant.
I think many countries have planned to regulate cryptocurrency, like in my country. although not yet realized, at least this is a big step to include crypto into the stock market. if this is realized and followed by many countries it will certainly be a big movement and can have a positive impact.