For the people who are not interested in crypto,they hear a stereotype of crypto by government,they said that it used to illegal activities like money laundering and drugs.That's why people don't want to involve themselves to something troublesome.
Exactly.People always hear bitcoin as a scam and is used in some illegal activities so they tend to lost their interest somehow.And the fact that they are not knowledgeable about bitcoin,only depends on heresays,will make them more ignorant whats the truth about bitcoin and how it works knowing its still full of potentials.
Such news cannot effect the image of bitcoin too much. Actually not only bitcoin but all round every currency may be use for illegal activities, but these cannot stop people from using it, bitcoin has now become part of our daily life, and in every instant its important is increasing, therefore bitcoin popularity will continue increasing, and people will like to continue using bitcoin and do investment there.