It's because of the news out of China. We've seen crashes before it will stabilize around production cost.
How much is the production cost?
well seeing as the cost for equipment to mine has gone up that would mean the value of BTC should be going up.
As the costs increase how is that supposed to push up the value? Does each miner go "BTC needs at this price for me to be profitable, I better go buy some to increase its value!" ?