Basically I do not understand the reason for so much volatility in the market. Is this volatility a good sign of the market or a bad sign of the market?
The crypto market is volatile already. The buying and selling in the crypto market brought about the volatility you see in the price of bitcoin. Some investors who are newbies as you would think that volatility is not good for bitcoin to be fluctuating up and down in price within a short interval. But to others who have understood the volatility of crypto would tell you that, volatility can be seen as an opportunity to acquire more bitcoin to one's portfolio.