I think that yesterday was a panic selling by some people because the china government has tried (or did) affected the bitcoin by tried to control it, but the price again went a little up.
I do not think that yesterday's events and fluctuations in the price of Bitcoin is just a panic. Surely there are some hidden reasons
I usually read the news here in forum and I have read that something in China has happened and I believe that this is the only thing that could affect so much the bitcoin price.
The price is still holding above $700. Anyways, it doesn't look like a massive panic sell. It didn't plummet to $600, around which it had been hanging for nearly two months after the Bitfinex hack in early August. It fell something like 40 dollars, nothing out of the ordinary given the previous growth for a few weeks without a major correction. $700 seems to be a new support level now.
I agree that it probably was more of a correction than a panic sell. The price went up very quickly and it only pulled back to less than half of the quick rise.