I believe that this market has never been characterized by great stability, because unlike institutional markets, the crypto market has been much more susceptible to experiencing large inflows or outflows of capital according to the rumors or the emotional aspect of the investors.
And personally I do not think this will change much in the medium term, because the decentralized aspect of the market prevents it from being intervened by regulatory authorities that prevent the speculative manipulation of prices.
I don't think that crypto is more volatile because of the fact that its traders within the market are more emotional by any means.
It's just that the crypto market is something of a global thing, with no central entity to manipulate the supply of the currency in order to achieve various policies of their's. You briefly mentioned this, but I think this is the most important part. And in a sense, this inherent volatility of bitcoin is actually what makes bitcoin so advantageous as an independent store of value in the long run.
I honestly don't see prices being stable at any given moment in the future, because if it was stable, then it essentially means that bitcoin would be pegged to fiat currencies, which is actually something that no one wants and will not happen. Volatility may reduce in the long run due to increased adoption, but it will never be completely stabilised due to the speculative forces as well as the inherent inflationary nature of fiat, which it is being traded against.