The seas have been very rough in 2018. The great ship Crypto remains afloat, but has been pushed back by battering seas and adverse winds. It appears that the laws of price gravity still apply, and can be cruel in their speed and efficacy.
All is not lost and the ship remains above water and seaworthy. Volatility remains the headline, now it is of the more painful type. Bitcoin, Litecoin, Ethereum, & Monero have seen slides well above 40% off their late 2017 high water marks. We see this as part of a healthy- if difficult- long-term process. Crypto did not invent volatility, nor is this the only site of heavy price turbulence.
A look at US Dollar, oil, gold and many other assets suggests that wild price volatility is a long, winding, and rich tale. It is a story of many characters and sadly, less rare than many of us would like to believe. Oil prices have been dramatically volatile and deeply impactful since the early 1970s. Gold prices have swung far and often, going from $220 per ounce in 1970 to over $2100 in 1980. Even the mighty US Dollar — pillar of global stability — has been volatile across its recent history.