Actually there are a several things driving this, possibilities at least.

First, if one looks up "Elliott Wave Theory" they'll find a lot of explanations on how it works. Simplified, there are 5 upward waves mixed with smaller downward ones, then 3 downward waves, mixed with smaller upward ones. Then theoretically, it will start the whole thing over again.

There was a lot of talk a couple of weeks ago about bitcoin being in the 5th wave. What is happening now seems to bear that out. It dropped about a week ago....had a smaller upward movement....now is dropping again. If this theory is correct, it will move up again shortly, then have a larger drop one more time before it finally corrects upward.

Whether this is the case or how long it will take are subjects for those far more savvy in crypto than I.

Another reason this might be happening is that recently the CEO of JP Morgan Chase said that bitcoin is "a fraud" and the bubble is going to burst. So people panic, without keeping in mind that banker are unlikely to ever have anything good to say about crypto since it's inception is designed to take the power away from banks.

While the Chinese thing may be a rumor, may be false.....all it takes often is a rumor to get panicky humans to react without thinking. Keep in mind this kind of correction has happened consistently in crypto and with bitcoin specifically. Understand that, don't panic, and it should be back up before you know it.

I hope. ;-)