Of course Regulation is very much a key factor in the survival of bitcoin in these markets! Why do I say so, well when it comes to investments...no investor wants to put money in an asset that has no protection of the law should things go south and besides..because the bitcoin model is centered around the border of supply and demand, legally recognized bitcoin means demand will be available which translates into price going up...if it were illegal very few users will want to associate themselves with an asset that will get them in trouble with the law.