Too many new people bought at the top within too much hype and don't have the experience or understanding to know what it is they've bought. CNBC were telling people how to buy Ripple at the top! There's also too much FUD around now and all this makes the price have to drop to a point where the ones buying are happy with that price level and level of FUD around (FUD which may be less uncertain by that point).
This way when it goes back up you have holders who bought the panic sellers coins lower which means they don't worry so much about dips as they got in at a low price and they're ready to wait. The price will also have a long way to go down a long way before their coins are worth less than the price they paid for it. They're also hardened to the negativity, negativity as I say which may be less by then anyway.
Crypto is only getting easier to buy and privacy is only getting better, the only thing all this regulation does is slow it down and it will direct the flow of energy in how developers are creating and implicating these systems. Lets say they banned any company to sell you crypto like Coinbase, then all that would happen is you'd have a company that would develop a Local Bitcoins-type peer to peer solution into something more than it is now. If they tried to shut it down then they would only succeed as far as the system was centralised, and so instead of a company that might help with escrow you'd have a system that esrowed with smart contracts. With crypto I really do believe there's always a solution that can be found, and the only downside is to all of this is that there will be periods where the system is down as it adapts. But those down periods caused by them trying to attack it are really only making it stronger, like the immune system response. An immune system is weak if it isn't attacked.