No, demand is rising due to its technological advantages. Press help accelerate this, and while there may be crashes ahead of time, we are not anywhere near the top now.
last year pick any day and MTGox had over 130k-150k of sale orders.. meaning there were that many BTC's deposited into MTGOX to be able to sell.
now there is 13k.. so ignoring the supply of coins in peoples personal wallets. there is a lack of supply on MTGOX, making MTGox prices shoot up, and every other exchange follow like sheep.
this has been noted by china's exchange slowing increasing its supply. so slowly you will see china flooded with coins, thus a chinese slow down and possible drop. while MTGox rises.
and then the chinese will ofcourse try selling at gox again to profit on the whole arbitrage between fiat currency differences.
all in all the volitility swings will happen more often now that there is a new country involved with a large population base playing the markets. we may not have noticed much of a change if a few UK exchanges popped up to steal the U.S owned BTC. but china.. well this is a whole new ball game.
A few are going to get very rich and most are going to end up holding the bag.
