Following the news, Bitcoin's value began to collapse.
Here's a chart that shows Bitcoin's collapse today. You can see where exactly where the Silk Road news hits.
This small collapse mostly comes from daytraders which sold high after reading the news yesterday, in the hope to get a cheaper entry point.
April was a real collapse. This one just shows how "small" Silk Road really was in the btc economy.
Some bitcoiners argued all the time the last years, if Silk Road gets busted, then btc is dead. And now nothing really bad happened.
This is a day to celebrate, the badest argument against btc is now gone.
As other people have said this is now priced in I expect we will hover around the $125 mark before returning the bullish trend; the fundamentals are still sound and valid. SR was a small although visible part of the Bitcoin economy but not all of it.
There is a good chance of a large increase if the US debt ceiling is breached!