The FTX contagion is terrible for optics and sentiment for the crypto space. It could certainly be a long winter.
However, the demise of FTX was needed considering the efforts of SBF to obtain political favor for centralized entities, like his. He was in bed with the SEC and is one of the single biggest donors to the democratic party. Good riddance.
Hopefully the regulation that comes from this will ensure centralized entities have 1:1 reserves on client assets. Also, this is bullish for the supply side of the crypto market. FTX was selling Bitcoin and other crypto supply that didn't exist. Goodbye fractional reserve crypto banking. Leave that trash to the legacy system.
Bitcoin will continue to gain adoption. Hopefully devs will continue to make strides in the UI/UIX department with better solutions for non-tech folks with seed storage, etc. It will rise again to the disbelief of many.