Though bigger countries and there FUD can't take down the crypto today then also the fear is real. The problem is with the FUD and it's after effect! If you see, whenever there is FUD (mostly from China) then crypto will crash to hell and you will start seeing the bloodbath everywhere. When BTC goes down the road, the alts follow excluding few exceptions.
The problem with this economic model is it's poor in handling such stress situation; followed by main reason of volatility.
Crypto is not staying strong really, it's being manipulated by that country and somehow I feel they are making money by that strategy. Its bad for bitcoin's economic model.
It doesn't crash as much as it used to, that is a good thing for us really. I understand that it still has an impact but I remember China being able to drop the price 50% all by itself for a long time, even in 2021 when they said miners will not be allowed, that was a big crash, now they made it fully illegal to do transactions and exchanges and it didn't do a 50% anymore.
So, I assume that we are going to the right direction, it is certainly something I would love to see more of as well. I would guess that it is something that is proven to be hurtful to crypto but it is an exterior thing that we can't stop, China can create as many FUDs as they can and we can't stop them, so all we have to learn is to ignore them.