Ok. Bitcoin is going "down" because dollars are disappearing. The little bits of paper are starting to vanish like toilet paper because institutions (banks and the like) are hoarding them to be able to pay taxes and probably bonuses to their leaders.

So right now dollars are like toilet paper and everyone is worried that they won't have a clean bum. Thus they are more "valuable" than bitcoins. Now the main difference between dollars and toilet paper and bitcoins is that you can print an infinite number of dollars at a whim. You can only make so much toilet paper, and you sure can't make more than 12.5 bitcoins per 10 minutes.

When the super flood of dollars hits, people will be flush again and bitcoin will go back to about where it has been (IMO). Note I don't think it will skyrocket because the dollars being printed are just filling a pothole that has been growing all along and people have been blissfully ignoring it.

The people ultimately screwed are people on pensions, people on fixed income, and people who panic.

Note that all of the above assumes a sane person is in charge of all this. Such is not the case.