Inflation would be priced in, since the Nikkei is denominated in yen. It would just make the index go higher. Also, a 7% drop in the entire index is huge. That means many stocks fell much further.

Relax about China; the Chinese have been figuring out how to get around the CCP's censorship for years. Sure, it means an adoption boom is unlikely but we'll still see some support from China. Maybe those interested will just move to OTC.

China attempting to block bitcoin traffic = good news for bitcoin(they legitimize it by banning it)

Nikkei crashing 7% = good news for bitcoin (if you have been following Japan recently you'll know why)

Most of the "bad news" is really good news. Heck, the Gox lawsuit and Dwolla seizure was good news, and people moving away from Gox is good news. Finally folks are starting to realize that we live in bizarro-world where everything is the opposite of what it seems.....

Exactly. If there is, say, 4% inflation, then the 7% drop is actually a 11% drop in actual value. (Clearly there wasn't 4% inflation today, I was just using it to illustrate a point).

Well, we know at least the security part of BTC is safe. The unsafe parts lie at the users level and of course in a bigger way at the government level.

Regarding that last point, look at what is happening to currencies all over the world. Essentially we have "managed" hyperinflation! Confidence is all that is keeping the system up. If a few more
stock market crashes happen like in Japan today, this ship can topple and that lack of confidence would just open up the flood gates to Bitcoin and other stores of value (see Cyprus - I spelled it right this time, please note). Now, in that way, what do you have to lose? (A government closing it down? A price crash? ) You need some store of wealth. Gold and Silver work but the banks and/or hedge funds have been naked short selling them and you can be sure that will continue as they do not want people to lose confidence in the Dollar, Euro, etc.
But people are still buying them up. So, safe to me is a relative thing. The whole reason why BTC is here right now.

When the stock markets start crashing the currencies will be right behind them (maybe not in that order) and then you will see a disconnect between dollars/Euros/etc. and gold/silver/btc. You will want to be holding something in your control, not a governments or states or military's.

Haha the first government that starts fighting. I say: Bring it!

Yeah, a tiny $120k wall looks like a super wall at Bitstamp

Do you remember our good old Wallzilla, with his $2M wall, pumping the price up before his dump?

Just to give some context, $2M is exactly x2 the total amount of fiat sitting on Bitstamp's order book.

Imagine how that wall would look on Bitstamp

I know exactly why it went up... Last night I said f*** it and sold at 124.xx, so of course it rises to 126 today...

That's pretty big news. I don't like the sound of it one bit. The media could dine out on that.

Oh, they have been going on and on for a while already, I'm not too worried: http://www.youtube.com/watch?v=J7GFfJVo_KY