The regulatory environment has become tighter. Governments and financial authorities have started to impose regulations aimed at preventing illegal activities, which for me is kinda normal job of every government.
Governments less paid attention on Bitcoin market, then cryptocurrency market when market cap of this market was smaller in the past. With time and growth of this market, its market cap becomes bigger and governments have to pay more attention on it, do more regulations, tighten their regulations and want to get more money in tax from this market.
The future of cryptocurrencies will likely depend on finding a balance between regulation and maintaining the core principles of decentralization and freedom that originally defined the space.
I believe Bitcoin and cryptocurrency market will be here to stay with us and governments, central banks. They will only regulate this market more strictly but will not destroy it. With stricter regulations, there will be less freedom, privacy but we will still have this market existence to use.