Honestly, I don't know what is the exactly reason on why bitcoin is volatile. The volatility of Bitcoin for me it's a normal and this I know on why, it's because of supply and demand.
Wow, what the hell is that suppose to mean ? I think the most basic answer is because the Bitcoin market is actually really small. Hahaha, I guess you misunderstand something. Its also almost completely unregulated. Or am I the only one who does not know it. A market being small means that its subject to wild fluctuations when people buy or sell large amounts of BTC. Maybe you are right. Bitcoin is so volatile because of its limited quantity when compared to other fiat currencies but the volatility rate keeps increasing with the bitcoin price rise so we never can have stable value with the bitcoin. But that is the purpose of btc creation.