So either it’s a coincidence that it happened the day prior or there was some leak. Someone knew about this, most likely someone at coinbase or the government and leaked it and everyone shorted.
But when the news came out, it already bottomed. So it’s strange.
Maybe this is a little leak from an insider because if there is no news of this then I don't think it is possible that the price has dropped so much even though the price has dropped this news came.
Remember that news of leaks will always exist sometimes when people already know then they will take advantage by going short, it was worth it a few months ago where one Cointelegraph went short and profited from it.