The first thing to understand is that Bitcoin price’s volatility is an assumed choice. Bitcoin was designed to work continuously. Transactions can be conducted 365 days a year, 7 days a week, 24 hours a day.
Whatever happens, Bitcoin continues to add blocks of transactions to its Blockchain.
Bitcoin belongs to everyone, and therefore has no leader who can make arbitrary decisions to influence its operation.
As such, Bitcoin is the only true free market in the world. Unlike Wall Street, which will halt trading as soon as the market loses more than 7% in a single day, Bitcoin will continue to function whether its price loses 10% or 50%.
Bitcoin allows its users to find themselves the equilibrium price.
When Bitcoin loses $60 billion in capitalization in a few hours, as it did on March 12, 2020, no Bitcoiner will require a bailout or outside help.
When Wall Street loses 30% as it has done for the past month or so, all traders are calling on the Federal Reserve for a massive support plan for the U.S. economy.
The Federal Reserve always ends up giving in because it is the ultimate guarantor of this system which benefits only a minority of people.
The solutions generally consist of using the monetary stimulus to inject more and more liquidity. However, this seems to be working less and less as we can see at the moment.
On the other hand, Bitcoiners have accepted this sharp drop in Bitcoin price without fear. The rebound that followed allowed Bitcoin price to go back above $5K.
So its current price is really what its users are willing to pay for Bitcoin.