But doesn't that make it harder for merchants to adopt Bitcoin? If it looks too unstable people won't trust it much. But would be nice if it was slowly increasing in value and not decreasing.
The merchants (few that there are), almost always convert to fiat at time of sale, making that point nearly moot.
I still think relative stability is a good thing. Serious people scoff when they see something go from $75 to $1200 and back to $200 in the space of a couple years. Can you imagine the change in perception if we simply gradually rose from 75 to 230 instead? Of course greed, crimes, and limited infrastructure got in the way of that last time.
Bitcoin isn't an upcoming actress, it doesn't need publicity for publicity's sake. This simply attracts illusory and temporary support. It just needs to be functional and preferable to alternatives for an evolving and growing set of use cases. The possibility of enduring survival and success will only follow that.