Most asked question by anybody new to bitcoin is the reason bitcoin price fluctuates. Experts have also put so many articles into writing as to the reason bitcoin is so volatile. There are many factors governing the volatility of bitcoin price. It can lose a lot of value in price within a short period of time and also skyrocket in value within short term frame also. Bitcoin price volatility does not have a general index(an indicator for measuring asset of any class) yet compared to traditional assets.
Some factors affecting bitcoin volatility are bad news decreasing rate of adoption. When investors see big negative news headlines, they panic and this drives bitcoin price against dollar down but smart investors see it as reasons indicating widespread adoption of bitcoin. Perceived store of value causes bitcoin price fluctuation. Bitcoin differs entirely from government designed currency as it is fixed in supply and this protects it from inflation. Big holders can also influence bitcoin price, for example an investor cannot liquidate millions of dollars worth of bitcoin without shaking the market. These are just few of many reasons bitcoin price fluctuates.
Even with bitcoin price fluctuation, there are wide range of opportunities bitcoin has brought and much more to see in the nearest future.