There is no need for a regulation for a market to have trading value. I mean it isn't a mandatory requirement. Moreover, the market moves nased on the factors of demand and supply. At times the super hypes also makes the demand very high. The dump and pumps are also influenced by big whales who have much Bitcoin and can move market.
Not only it should not be mandatory, it is harmful. State intervention always do more harm than good. Do not believe in the illusion of socialism replacing the free market forces with their own bureaucracy, it never worked, and it never will.
The ups and downs are healthy, it shows the world the asset is free of intervention of any kind. There is nothing more dangerous than an artificially pegged asset to whatever someone in power decides it should be pegged to. Yes, including those so called "stable coins", very dangerous. You were warned.