No there isn't a spectrum. A stolen million is still worth a million. If a thief is laundering the money, he's choosing to spend it--no dollar just loses value all of a sudden.

You may be using cash once used to buy drugs or hire an assassin, but it doesn't get tainted and diminish your ability to spend it.

Restricted Bitcoin literally cant be used for transactions making the Bitcoin itself worthless even if it wasn't you who committed the crime that got it restricted. That doesn't happen with cash.