People react on that negatively especially for those new in cryptoworld.There is no specific cause of bitcoin's volatility but I think its more on the emotion of every traders and the manipulation of a great whale.Bitcoin is getting stepped because there maybe some people who hold the bitcoin and release it until right time.It could be this factor that can cause bitcoin prices will rise.
Numerous analysts have asserted that bitcoin suffers from liquidity problems, which could in turn be contributing to bitcoins sharp volatility.Having less liquidity,instead of more,can potentially exacerbate price fluctuations, making it so that the digital currencys inevitable declines are more severe than they would be otherwise.