This graph represents a small range of 4.95 volts to 5.05 volts. Random electrical noise causes the voltage to fluctuate, as you can see in graph. This is often called 'noise' or 'ripple'. The blue line, represents the voltage of a circuit that doesn't have a bypass. The pink line is a circuit that has a bypass.
Ripple voltages are present in almost any DC circuit.
You can see even with the bypass, the voltage does fluctuate, even though it is to a smaller degree. The key function of the bypass capacitor is to reduce the amount of ripple in a circuit. Too much ripple is bad, and can lead to failure of the circuit. Ripple is often random, but sometimes other components in the circuit can cause this noise to occur. For example, a relay or motor switching can often times cause a sudden fluctuation in the voltage.