A recent article in the Wall Street Journal critiqued Bitcoin for having an unusually volatile quarter, with prices ranging from peak levels at $5,000 all the way down to $3,000 lows. Such volatility is unprecedented, according to the author who said:
“Bitcoin more than doubled in price, then plunged by a third in what was a hectic three-month period even by the virtual currency’s Wild West standards.”
Not uncommon at all
Bitcoin did indeed have a volatile quarter, but not uncommonly so. Rather, the increase in price was followed by a consolidation period coupled with negative news being released regarding China. One observant tweet pointed out that the volatility in Bitcoin price was not, in fact, uncommon.
June 2016: 41% dip
— Vijay Boyapati NO2X (@real_vijay) September 30, 2017
Jan 2017: 37% dip
Mar: 31% dip
May: 33% dip
Jun: 39% dip
Aug: 20% dip
Sep: 37% dip
Not that uncommon actually.
Statistics indicate that volatility is more the norm than a surprise, given the nature of the cryptocurrency. Additionally, the WSJ calculations do not take into account the substantial increase in price from the beginning the quarter as well. While prices did fluctuate, the drop from $5,000 was not as dramatic as the figures would suggest.