The fact that the price volatility of bitcoin is capable of increasing with an increase in its price can be seen even in the example of the last rise in the price of bitcoin to $ 40,000. On January 10, the bitcoin price exceeded $ 40,000, and the very next day, on January 11, it dropped to $ 31,000, on January 12, it rose above $ 36,000. If you look at the CoinMarketCap table at this time, the price of bitcoin just jumped up and down by hundreds of dollars every few seconds. Previously, when its price was lower, such high volatility was not observed. You can imagine how its price will sometimes jump when it reaches a hundred thousand dollars or more
That's what the theory says
Both the rise and the fall are driven by institutional money going in and out of the market. Simple folks don't actively sell but they still accumulate religiously on pullbacks. This leads to an ever decreasing supply side because the number of bitcoins cannot significantly increase as there are only so many bitcoins (as opposed to, for example, gold, which supply is elastic). As a result, volatility is set to outrun the rise in prices, and this is exactly what we see happening right now. Eventually, the Bitcoin Big Rip event should occur (at least hypothetically)
Interesting to read this long-duration thread over the years at this point. I think I was skeptical of the idea 3 years ago, but I think the general thesis has borne out pretty well over this most recent run up in the price, and I think the institutional investors moving in really illustrate well the effect it has on the price and the crunch on the supply side driving volatility.
Bitcoin is at the upper border of the price range right now and few in the market represents real movement in the future, so volatility is inevitable and any news can set the price to the skies and organize the hard drawdown of foreign exchange rates. It seems that a correction occurred a week ago, and now we are again approaching the upper limits. 
