Is Bit Coin Crashing Out So Soon?

The fast rising e-currency Bitcoin prices fell from a high of $1,240 to a low of $870 this morning. This is according to data from Bitcoin exchange Mt. Gox. That $370 drop
can by characterized as a 30% crash. Earlier today, the People's Bank of China warned that the controversial electronic currency carried risk. It also instructed financial institutions not to trade it. For me, i can only hold the exact amount i would use for transaction and not as a store of value because once bitten twice shy...Who remembers e-gold and recently Liberty reserve. I wonder if Paypal has something to do with this.
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