At some point I am really messed up and lost in vein when it comes to bitcoin's price. I think that every second it gets more and more a victim of speculation and gets abandoned from its original idea.
If bitcoin could perform very well at 6K some months ago, why it become 60K after some months? And then it went back to 30K but was still functioning very smoothly, i.e. it was doing the job it was created for.
Again, If bitcoin could perform well at 30K some weeks ago, then why it worth 60K right now? I just don't get it when people say that bitcoin isn't speculated and all of these prices are just natural.
Much like the stock market - trying to understand the waves is almost impossible because it is driven by such a collective amount of irrational behavior. When Bitcoin is doing well and all the news is positive people flock to it. When a few bad developments hit the news, like eco-unfriendly concerns, possible US regulations or China banning it outright, then people all try to flee at the same time. Similar things happen in the boom and bust cycles that drive stock ownership but are amplified much more greatly because it is a single asset getting so much attention. Nothing much actually changed, just the static noise around it was producing a certain overall buy or sell signal.
In general, it has an unstable price because it fully depends on the community and its market demand. The price is speculated, not manipulated and in this case, people won't stop predicting the price no matter what. It is just about accepting and making deal with the volatility of the market because whether we like it or not, that it remains like that till forever.
It is a way we have to adopt the system, people make money from this because of such volatility and I guess they are happy too. People make happy of its existence not because they can use this to buy things or to pay their bills but it was considered as a profitable investment/asset.