A new analysis of bitcoin price data from Bespoke Investment Group finds that the cryptocurrency’s “bubble” burst in 2017.
Bespoke’s research team examined Bitcoin Price Index data for the past three months and found that between June 2016 and June 2017, the value of Bitcoin dropped from $1,739 to $6,567.
By the end of the third quarter, it was back to $1.7 million.
Bike, a US-based bitcoin exchange, said it saw a 40% jump in the price of Bitcoin during that same period.
Bepart’s analysis of the data shows that, while the bitcoin price experienced a dip in late August, it rebounded in September and October.
It also suggests that the Bitcoin bubble burst was triggered by a technical glitch, rather than a sudden, significant drop in the value.
The analysis, which uses the CoinMarketCap data, finds that “significant” is not a strong indicator of Bitcoin’s recovery.
It is possible that the spike in bitcoin prices was triggered not by technical problems, but by a surge in demand for Bitcoin by businesses and other users of the virtual currency.
The data also does not suggest that Bitcoin’s price had peaked prior to the technical glitch.
Bekker’s analysis, however, suggests that there is “strong evidence” that the bubble burst, according to which “the majority of the bitcoin market cap was lost during the time of the Bitcoin crash.”
The Bespokes analysis also notes that Bitcoin prices dropped significantly from January 2017 to May 2017, but the bubble had burst by June.
The Bitcoin bubble is now down to $5.8 million, according the Bespokes team.
The average price of bitcoin for May 2017 is now $8,948, according Coinmarketcap.