In my opinion, although China's new policy of prohibiting mining will cause the price of Bitcoin to fall in a short period of time, but for a long time, it is good for the development of the Bitcoin ecosystem.

Currently, China has a large number of Bitcoin miners, and most of them join the industry just to make money. I don't know how miners in other regions will deal with them after they get bitcoins, but in China, in order to pay electricity and other fees, most of the bitcoins will be sold directly on exchanges. This will put a lot of pressure on the price of Bitcoin. If China completely bans Bitcoin mining, this part of the mining machines and computing power will be transferred to other countries, or some long-term holders. As far as I know, every day China sells bitcoins worth tens of millions of dollars. Without these sellers, the price of bitcoins would be more likely to rise.

If the mining machines and computing power are in the hands of Bitcoin's HODL, it will be beneficial to the entire Bitcoin ecosystem. The Chinese government will eventually realize that Bitcoin cannot be banned, but the lost mining machines and computing power cannot be recovered.