Can BTC continue to increase in price with issues like these? Some people will lose confidence in it because of the risks.
Only some 13000 BTC had been stolen from Cryptsy and that's nothing in comparison to the Gox theft. In addition a lot of altcoins also disappeared (2.5k-3k BTC worth LTC, BTCD and XC) what will be dumped for BTC at some point, I guess. Even 13k BTC wouldn't have too much effect on the prices.
13,000 bitcoin is just 4 day supply of bitcoin. It will be absorbed by the market easily. The altcoins are even easier.