The technology adoption price curve applies to crypto-currency in general. Whether Bitcoin is the vehicle for crypto-currency in general remains to be determined, but most likely it is.
That there are weak hands which are illogically fearful of impractical regulation is just the way markets work. The shorts shake the trees (so the ripe fruit of weak hands can be harvested) as service to mother nature.
Edit: that is unless you think crypto-currency is fundamentally impossible to perfect, i.e. that the centralization problem plaguing Bitcoin is insurmountable (meaning impossible to mitigate). I don't believe so and I am down in deep on the technical issues.
While I think that cryptocurrency might achieve near-perfection and answer most of our problems as money transfer vehicle, payment processing solution and monetary system.
But I also think that there is high possibility that anti cryptocurrency lobby (basically every major financial institution, banks and governments are afraid of free money) might interfere with evolution of BTC.
In normal circumstances technology adoption price curve would be 100% correct - sure, people are overreacting a little every time something goes slightly wrong with BTC, but we can't predict how this situation with capital control will unfold.