I think the main reason is not the news, but the fact that Asian investors and traders, those including in China, have started to sell their bitcoins before anyone else.
It created an avalanche, or a herd instinct, if you will, and caused people in the other parts of the world to sell. It is FUD at its best and it turns out the raid on Binance offices came out to be fake.
This space is still Wild West with buncha gunslingers, but it is way more mature compared to some 2 years ago.