When we say Bitcoin is volatile, we mean the price of Bitcoin is volatile. The spot rate of Bitcoin at various exchanges changes every moment and, moreover, it functions 24/7. Hence, any user or community member of Bitcoin is perturbed by the regularly changing price of Bitcoin. The following chart shows the price fluctuation of Bitcoin over the last financial year:

The volatility of Bitcoin is the most discussed topic and has been a concern for investors, miners, and supporters of Bitcoin since the exchanges of Bitcoin came up. Some prime reasons for this as follows:

• Security breaches: This has been a major issue in the price fluctuation of Bitcoin in the past; whenever news of security flaws at an exchange's end comes up, the price of Bitcoin takes a hit, since this makes the investors start to doubt a certain exchange or the Bitcoin network.
• Legal issues: There have been many doubts by global lawmakers who make predictions on Bitcoin's price or even try to label Bitcoin as a non-legal entity. Various statements by the governments also hamper the price.
• Psychological shift in adaption: Bitcoin, although getting adopted and supported very quickly, is still a new currency and is very different from anything that came before; this leads people to be wary of adopting it. Plus, any negative press directly impacts the adoption of Bitcoin, which sometimes creates a downward spiral in price until any positive news surrounding Bitcoin surfaces.

The preceding points are just some of the prime points that are causing a huge volatility in the Bitcoin market. There are various other factors that play a vital role in the price fixtures of Bitcoin from time to time.