From my research, that was not a false alarm or news. There was a ban on crypto in China(as if it hadn't occurred alreaady). Actually, China is widening its ban on cryptocurrency transaction, and mining. As it stands, Crypto activities in China will be considered as an illicit financial activity. They believe that it is responsible for some fraudulent activities, money laundering, and they even mentioned it's "excessive energy usage"(Sounds like they're pained). Anyways, the news on coming out tougher will only affect the price (for a while).

I read the news here: https://www.bloomberg.com/news/articles/2021-09-24/china-deems-all-crypto-related-transactions-illegal-in-crackdown

Please do some research before claiming "true or false" news.
The news your read is old news but just posted and spread by the media lately.
Check this Fillippone's post: https://bt.irlbtc.com/view/5361664.msg58012462#msg58012462

Don't be easy to be influenced by new issues or news, we all know that some people probably use that fake news for their own purposes. I am not surprised with much fake news, there are many big players in crypto investment now. Those big players must want bigger profits by buying at a very cheap price. They want Bitcoin price to drop by spreading the old news (FUD).

Look at the FUD. Do you believe it is real?

China will lose a huge income from tax if they ban crypto transactions and crypto exchanges in their mainland. With the greed they have, do you think they will self eliminate opportunity to earn income for their country and their regime?

Many exchanges try to move their main offices out of China main land years ago and they will continue this trend. Only if China want to reject such income, other nations have no issue with China ban as well as cryptocurrency investors or traders.

Crypto has recovered from China's FUD over a dozen times in the last 12 years

Let China ban bitcoin and it is better they do not get involved in bitcoin at all. China does not like crypto but they want to make their own digital currency and that means they want to take down the market by their currency. China's expansion will not stop just by ban crypto, but they will do other things to conquer all countries. It is just another bad news for bitcoin, but we know that bitcoin will not stop because of that news and we will see the rising of bitcoin soon.

It's not a false alarm, they have been banning crypto since 2013, LOL.

So why are investors still affected by this news? I haven't check the price, but today it is $42,000-$43,000. We are still above or at least in the average for this month. So I guess the drop will be temporary. On the contrary, if history repeats itself, this kind of statement from China will fuel another bull run.

How many FUD from China in history, especially China ban events?

I did not count and did not finish my research on it but please look at the chart, there are some massive crashes and I believe many of them were triggered by China ban events. Anyway, after all, Bitcoin recovered and grown up significantly.

Think about such events ^[1]?
^[1] Crypto has recovered from China's FUD over a dozen times in the last 12 years

Have you ever thought that such events are good supplementary sources for Bitcoin growth?

The key is to look at people's views on the ban. Some news has spread before being confirmed. This may be done deliberately by someone for other purposes. So we are in the market. Don't be misled by the news. Their purpose of making news is to create panic and affect our emotions.

I do not count as well as I do not care with what China said. Their government does not like crypto and will do many things to stop the growth but unfortunately, they can not do that. No matter how hard they do, crypto will grow because the other countries will support the growth of crypto.

I do not worry about the FUD or other things. I consider that is part of the crypto journey and it is normal to see some people do not like a new thing that can change the whole world if it gets more adoption.

With so much bad and good news, that affects bitcoin while more people get benefits from bitcoin. So people from other countries will see and think if bitcoin is good or bad for them.

I don't really focus on countries ban or accept bitcoin anymore. It is important but I think the more important things are fundamental and technical analysis in trading. Company with good governance will survive again bad economic situations because they have great people behind it, who know what to do. Now we face a reality that most of bitcoin users are trader so we have to know how to deal with it. In my opinion as long as we already take good position in trading then if there are any bad news then we don't need to worry about that, it's just a matter of time.

I don't think that we are to blame chinese authorities for this decrease. Crypto market was really overheated (not only bitcoin, but all altcoins as well), so it is a usual correction after a protracted growth. Moreover we see many economic news around the world. Chinese giant company nearly defaulted on bonds, there are news that the US is about to default, so stock market is also decreasing.