Yeah. Higher shifts do reflects instability. But if we consider past of Bitcoin, the base is becoming stronger. As for now, in Jan price declined to $700-800 but we all were sure that it will not go lower than that. The spread of Bitcoin made it sure that it will not collaspe significantly until something major happen!
For government, I think government will never consider to regulate Bitcoin as it is. But maybe a chance, Government and banks soon adopt Blockchain technology on mass scale in their operations.
Now banks can be and does not believe Bitcoin competitor. But they just do not like it. that Bitcoin is becoming more popular.
We see a good price Bitcoin, which means that it is becoming more popular with each passing day