Some meta speculation:

 Right now for a 0.5 watt per GH miner, the electrical cost (0.08 per KWH) per BTC is around $130. So any idea that BTC would go to some low number is ridiculous. Miners will want to recapitalize in this time period in anticipation of the halving. Recapitalization takes money and also requires the latest mining equipment. One explanation for the dip in BTC could be that investors are spending on new equipment and establishing new BTC mines. It's cold now in the northern hemisphere now, so this is the perfect time to expand.

The bump to $500 is consistent with the above because a miner will want to bank BTC while making a decision on what to buy and how many. This next cycle of capitalization with miners that are 2X more efficient and about 3X more expensive combined with BTC halving complicates the ROI decision.

 I think BTC is on the cusp of being unstoppable. If some nation were to try to exercise control, I could see other countries or commercial entities setting up competing BTC mining operations. The chip technology behind BTC chips is certainly unremarkable and could be copied by anyone.

One other angle in regards to BTC, BTC price jumps and China which is insufficiently appreciated is that BTC can allow money to be transferred out of China quite easily, which gets around currency controls. If some wealthy person needed to move their fortune out fast, I think BTC is the only way to go. FYI, right now people pay a 20% premium to walk their money across the border into HK.

A couple comments on the FUD:

1) The EU is actually extremely hypocritical. The 500 euro banknote is the highest denomination banknote in the world.

Here is an interesting BBC article on the criminal uses of this note: http://news.bbc.co.uk/2/hi/8678979.stm As the article notes in some countries these notes are know as "bin ladens".

 "The 500 euro note is really the note of choice among criminals.
"We estimate that more than 90% of the 500 euro notes that are provided in the UK have actually gone into the hands of serious organised criminals."

etc etc

2) What is never discussed is the possibility that bitcoin can also be used by the good guys to pay the contractors that inhabit the nether lands of mercenaries, informers, information providers etc etc.

3) The big problem for the Russki's is that BTC can be used to move money outside of the country.

My guess is that BTC is the latest speculative financial vehicle in China.

One thing that is missing in the west is the financial worldview/partyline of the Chinese press. The traditional places that Chinese like to put money in like real estate, new business and the stock market are kind of meh at the moment.

Gold, Bitcoin Soar After China Liquidates Most Reserves On Record To Defend Currency

http://www.zerohedge.com/news/2016-01-07/gold-bitcoin-soar-after-china-liquidates-most-reserves-record-defend-currency

This is a typical kook pastiche. All that is missing are references to table top fusion, gravo-magnetics, dark energy, zero point energy, Tesla and passing references to alien technology.

In the real world, any tech home run(s) of this magnitude would be accompanied by probably 10+ patent filings plus billions in early seed money invested by people in the know.

LOL - truth

Comments(bullish):

0) We haven't seen all the well off countries get BTC fever. It would be interesting to know if CALPERS is considering BTC exposure.

1) The Equifax hack will be another avenue for the "BTC store of value" argument given now how widespread our credit information is in the wild. BTC is years ahead in providing a safe storage solution for money. At this point would you trust a bank or a properly maintained BTC wallet to store cash?  Decentralization now is another benefit because hackers are hacking accounts a few at a time as opposed to millions a pop.

2) Somebody from the CBOE put it pretty concisely after all the Dimon FUD, people want exposure to BTC.

3) Dimon's squawk was an indicator that big banks have long term problems. The problem with BTC and altcoins is that there are low barriers to entry and I don't think a banks business model can make money off of blockchain technology. Already, there are the pieces laying around that do in total what big banks already do minus the overhead.

Frankly, for cryptos in general, the most reassuring signal in general was being positioned opposite of PBOC and Dimon. The simultaneity of their FUD was interesting.

The side profile of Ted Baxter is an added plus.