Bitcoin dropped today because of a variety of reasons. The most prominent reason is that the Mt.
Gox exchange, which is the largest exchange for Bitcoin, filed for bankruptcy in Japan. This caused a lot of uncertainty in the market, and many people sold their Bitcoin as a result.
Another reason for the drop is that China has been cracking down on Bitcoin exchanges recently. This has caused the value of Bitcoin to drop in China, and as a result, the global price of Bitcoin has also dropped.
Finally, there is simply a lot of hype surrounding Bitcoin right now, and as with any asset that is highly hyped, there is always a risk of a bubble. It is possible that we are seeing the start of a Bitcoin bubble bursting right now.
Only time will tell whether or not Bitcoin will recover from this drop. However, it is important to remember that even though the price of Bitcoin has dropped significantly today, it is still up significantly from where it was just a few months ago.
So even if you are feeling bearish on Bitcoin right now, it is important to remember that the long-term trend is still very much up.