Markets tend to price in future usage. Are there indications that bitcoins will be extremely valuable in the future ? Yes.

Is there progress being made every day with bitcoins ? Yes.

Is there global potential for bitcoin to be used as some form of currency ? Yes. (it is already being used in small amounts in several places)

Markets tend to price these things in. Investor sentiment is optimistic. Bitcoins current position certainly doesn't justify this price. But the market has priced in the future.