Hm, Bitcoin is not exacly faring better than USD at the moment, but it seems to hold its value against EUR fairly well. This latest drop in the USD/BTC might actually signify the strengthening of US dollar rather than weakening of BTC, in the grand scale of things.
The USD is gaining some strength as of late; however, this does nothing for the average consumer, in terms of prices of things lowering, so to an average person looking at bitcoin for the first time, it looks like bitcoin is loosing value...
Yup, the dollar vs euro doesn't affect my power bill. As far as I'm concerned it's only another $.7 "rally to the downside" to go until most of the US is in the unprofitable to mine with existing GPUs camp.
By this time next month we should see if people believe in bitcoin and will stop mining to buy it (which has downsides of its own) or if they, like me, only got in for the free computer hardware.