Generally all currencies are volatile in nature. Bitcoin is a decentralised digital currency. It operates only on peer to peer exchange system. Bitcoin`s supply was restricted at time of its creation. Bitcoin`s growing price is attracting more and more investors towards it. This growing demand and restricted supply is making bitcoin currency more and more volatile. Traditional currencies are centralised in nature, their supply is controlled by their regulators, due to which they have less fluctuations. Bitcoin has no central authority; its price is controlled only by flow of demand and supply, that is why it fluctuates a lot.