It falls in response to regulation news in the short term, but in the long term we will need regulation if it's ever going to truly gain mass appeal and be the kind of thing that people can invest in their 401k's.
It seems though like people's reaction is beginning to change towards regulation at least just for the community and cryptocurrency space to move forward. Really, let's face it, if it does not end up this way, government all over the world will keep dropping their negative feelings and serious clamp on the space until they make sure they get rid of the market, but with regulation since it balls down to exchange as well as crypto to fiat conversion anyway, things would make sense for the long term holders.