Relating this to cryptocurrency, if BTC who is the mother of Cryptocurrencies and who has gained extensive trust ceases to exist today, will altcoins flourish or will it make the people loose total interest in cryptocurrency.
The answer is a big no. If Bitcoin ceases to exist today, I am 100% certain that the entire cryptocurrency market will fall crumbling to the ground and might not even recover for at least a century. The cryptocurrency market of today is highly dependent on Bitcoin and its success. Bitcoin's failure is a failure of the whole market.
I think it is also very obvious that every time the Bitcoin market is peppered with FUD and bad news, the whole of the cryptocurrency market is also down.
Absolutely no way! BTC has always led the markets of alts, the FUD around BTC atm is what's causing everything else to drop. You never hear regulation on any particular alt but BTC itself, and that is because BTC to this day stands as the bench market for all crypto assets. There'll be no decoupling from BTC for sometime, and alts can't have a strong emergence without the push from BTC.