Volatility of bitcoin has developed due to the dearth of market knowledge amongst it's investors. People investing in bitcoin for a quick cash generally tend to get swayed by market emotions and overambitious claims by the champions of the crypto currency.
The complexity of Blockchain and the esoteric manner in which the currency operates makes it a tough study, this leads to people investing mostly on the basis of little know ledge and hearsay. As a result the market experiences intermittent patterns of sharp rise and fall, this leads to volatility.