Generally all currencies are volatile in nature. Bitcoin is a decentralised digital currency. It operates only on peer to peer exchange system. Bitcoin`s supply was restricted at time of its creation. Bitcoin`s growing price is attracting more and more investors towards it. This growing demand and restricted supply is making bitcoin currency more and more volatile. Traditional currencies are centralised in nature, their supply is controlled by their regulators, due to which they have less fluctuations. Bitcoin has no central authority; its price is controlled only by flow of demand and supply, that is why it fluctuates a lot.
Let's think it as a whole and if we talk about the volatility of a digital currency, well that's due to the movement of the supply and demand in the market. That's right the supply was being controlled so that it will serve those who wanted more trades in daily basis or in long term holdings set. Fluctuations always happens not just with bitcoin but also the other crypto currencies like those altcoins.
