Price of bitcoin is volatile and any related or non related news can move it to a bit in any direction. Regulations do make it harder for people to buy and sell bitcoin. It increases the financial risks and tax related concerns for normal people. Even for a bitcoin enthusiast, it could mean an unnecessary hassle just for holding bitcoins.
I have even seen crypto millionaires leaving their country to a crypto friendly jurisdiction just to keep their crypto business afloat. But with rising tightening of laws in favor of tracking and taxing crypto, the world could move towards global approaches against crypto.