How can this actually affect the crypto market?
There's none, we have some bad and good news, it's normal.
It's the lack of regulation that makes people suffer but bitcoin will stay and will remain a potential coin good for investment.
If one is careful with browsing online and protects his/her computer or any private data, this kind of "Sextortion" will never happen.
it could happen using fiat too, so there's no big difference.