The intrinsic value of bitcoin is in it's unique utility. That utility is adversely affected by wild price changes.
Price swings won't settle down until:
1. The bitcoin economy is bigger (a "market cap" of hundreds of millions of dollars instead of just a few million dollars).
and
2. Bitcoin is mature enough for people to really trust it.
Unless there is somebody out there with very deep pockets and a willingness to spend a lot of money smoothing out the fluctuations there's not a whole lot we can do about it besides make bitcoin better, easier to use, more secure, etc.