FUD and rumors of various country crypto regulations and bans are warranted. Check crypto news headlines for 2017 and 2013 and there is a pattern. Hold your bags this year.
You are right, that's not new to crypto, in fact, in 2017 when China banned bitcoin, the bull run happened, now they made another headline and it affected the market badly for a while but the price is now recovering. Those who panic will certainly lose the opportunity to sell when a new ATH will come.
Just relax, hold if you are into the long-term hold, and play the volatility if you are into the day trading or short-term trading.