Yeahh when bitcoin surged up, it hurt the overall economy. Gradually, coins are making their way back down. Then they won't jump so much.
Obviously when a market gets smaller the volatility goes down..

No. People keep selling all their stored up bitcoins so people need new money to buy them or the price drops. Coins won't stop being generated. There's not enough people buying coins as an investment. You really can't buy hardly anything with them and so the only option is trade them for cold card cash.