There is definitely increased BTC adoption going on. There is real growth in retail acceptance and some other categories such as travel, and some real startups doing interesting things and building out meaningful capabilities that didn't exist before such as remittances, bitcoin debit card, new investment vehicles coming soon, etc. Whether that is a reason to buy BTC speculatively is a question only an investor can decide.
This is an easy question to answer. Growth in BTC retail acceptance is a great incentive for BTC price drop. People are not buying bitcoin to spend them immediately, all those spent BTC are from longer term holders. It's obvious what retailers do with BTC they acquire: they drop them on the exchanges that same moment through BitPay or other payment processors. I believe this is one of the main reasons for current drive towards lower BTC price.
Hoping the LTC will rebound from this enormous drop like BTC did in the past is very optimistic IMHO. It may, but it's very unlikely. BTC is not in the same league with LTC, there were reasons why it recovered which doesn't apply to LTC at all, but you can never be certain how things roll out in crypto.