Volatily of bitcoin was normal, as long as there are trading of it in the market its price will change again and again. This was dependent to the supply and demand, basic of economics likewise. Don't be afraid about the drops of its price, what we should do is to be strategic in terms of the distributions of our funds so that we are not relying only in one crypto, this makes your hodl more risky that it might loss all your funds in a sigle time.
look, basically you are correct and what you're saying is true, but you are missing one thing, huge whales and high risk of market manipulation!
this is no way could be regulated trough economics law and that is why bitcoin will never be stable.