"Stability depends on the supply and demand and this two factors might capable to make market stable. We have very limited number of bitcoins for the whole world, so because of this little number of bitcoin high price and the fluctuation can happen. Some factors shows that stability is possible and others shows it is not.
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I believe more regulation would usher in more institutions and more stability but we sure should not expect for us to see 100% stability as no market will ever give that. However, it is normal to see a huge liquidity when we get to see the institutional investors stepping in, which I believe will usher in a more matured market and not just some highly volatile market which most of the time, are screwed up by the whales. Fluctuation is normal, but full stability should never be expected.
Decisions and regulations made by the government determine whether bitcoin can be stable or not. When the government of a country supports the development of bitcoin it is certain that Bitcoin prices will increase and can be much more stable than when before the regulations. This is the thing that will have a big impact on Bitcoin in the future.
Exactly, as this would bring about some development that ends up ushering in mainstream adoption, institutions will see it as a better market to trade with as they have more peace of mind since regulation is intact and all these things will make it possible for the market to at least reduce in its volatility level which is what I would prefer to call it rather than saying stable and I believe with that, things would get even more interesting most especially for traders.