I think negative news has a huge effect regarding this bitcoin price dropped. Many bitcoin holders sell their bitcoin for profit and the demand is not huge enough to maintain the higher value of bitcoin. But I believe it will not last long because whales are waiting to buy in a dip.
It's not just the negative news but also the current decisions of different entities that contribute to the increase in the prices, Tesla suspending the payment of bitcoin for their cars and China banning crypto altogether are just one of the most notable decisions that are causing the prices to go down.
Maybe we could say that it really has a devastating effect on the market but I never think this having a long-term effect on the market. Tesla suspends BTC payment, China is also banning crypto but there still a lot of business entities and countries supporting crypto which could help the market to recover shortly. I'm looking forward to seeing the price of Bitcoin will not able to drop below $30k.