Correct, which is why they are called crypto"currencies", which incidentally trade 24/5 on the global markets. The price of a currency is based purely on the level of supply and demand for that currency (so because most global trade is priced in USD, there is a disproportionate demand for USD). We know supply will be limited. Right now, there is a lot of BTC demand from speculators and almost none from end users. The speculators are chasing volatility - which is the exact opposite of what end users want. To me, that is what is causing the price movements right now.
Incidentally, although I am a believer in Crypto, I think that the design flaws in BTC will ultimately prove to be fatal, so in the long term, I think BTC will end up losing most of its value.