Governments indicate volatility to be one among the negative factor and fluctuate the market.
It only causes a negative feel because of the fact that they are not being regulated, its market value can be manipulated by those people who are in capable to transact at a higher volume. Also, another reason why the government warns people to take precautions is because of Bitcoin being digital, which is a clear sign that it may only be temporary as no physical sign to support that it will not fluctuate gradually, and the fact that it can be a tool for money laundering schemes.
I agree to your statement because that is exactly what they are into and that is the reason why they are telling people that they should not trust the bitcoin because of its volatility that can lead them to lose and also it is not permanent since the government can ban it anytime because of the risk of the anonymity that can lead to be used as a tool for illegal transactions.