It might not drop below 400$ but will be in the range of 450-600. News of the doj selling the silkroad coins is what has caused the drop but this is good news for the ones who will buy them, so by July the price might hit 700$
Not good news for us others - who won't buy them. If they buy low and we bounce back, they have the opportunity to dump.
Aside from short term price fluctuations, long term it is very good this chunk is held by enterprising people, not a govmnt with questionable motives. Even if they mean no harm, the doubt and fear of a future selloff would remain. Also they can't easily declare bitcoin itself illegal after selling it, which limits further law making to regulate how you do business with it, not whether at all.