It's simple: As long as there are reasonable expectations of the price of Bitcoin going up, that is a disincentive to spend it/sell it, or get rid of it in any way, because you would be losing some serious moon tickets.

The only way people would feel comfortable spending it is if the price flattened out, which can only happen if Bitcoin is above $1,000,000, so by then I guess the volatility will be low enough to start spending it.

Forget about spending it for your groceries, unless someone comes up with some serious technology on a second layer way that allows for it.