It's not just negative news from Chinese government, negative news from anywhere including the US can affect the price and this doesn't happen only to Bitcoin only. I happens to other tradable assets too such as stocks, commodities etc. Markets always react to news as traders look to make some quick profits or look for opportunities of buying dips.
It may worth mentioning that this is so much visible for Bitcoin and crypto markets only because there the price fluctuations are usually/normally much wider, in both directions.
I don't know though what could make Bitcoin's price daily variation stay within much smaller range. Removal of stable coins maybe? Or more institutional money locked in?