Bells are the flutes of the Shaitan

There is a context of this Hadith. At the time of the Prophet Muhammad ﷺ, travelers would travel across the desert in caravans with bells tied to their camels. Since a person travelling has not a lot to do, they would use this time for the remembrance of Allah SWT. The ringing of the bells of the camel would be an obvious distraction for the travelers.

Extrapolating this Hadith results in a general prohibition of music and musical instruments as they distract a person from the worship of Allah SWT. The vast majority of ulema use this and other Hadith of the Prophet to conclude that there is a general prohibition of music and singing accompanied by music in Islam. Only a few scholars have reached different conclusions therefore it is safer to follow the majority opinion.

May Allah SWT increase us in His remembrance.