The price of Bitcoin in early 2014 was based on popularity and hype. I really think that the normalization of a price for Bitcoin is good for the currency, and that's what I've seen happening.
Jan 1, 2014: $770.44
April 1, 2014: $478.72
July 1, 2014: $635.59
October 1, 2014: $381.33
December 31, 2014: $315.33
I do agree that the earlier prices were simply based on hype though. Typical buy high and sell low behavior.
You could look at an actual calculation of volatility instead of eyeballing some random prices: https://btcvol.info/ Right now we're in a pretty quiet period after the bubble in Jan 2014.
Also note that the site is measuring historical volatility instead of implied volatility as is customary for most financial instruments so it can't be compared one-to-one with VIX or similar measures.