Price Clustering in Bitcoin

7 Pages Posted: 18 Jul 2017

See all articles by Andrew Urquhart

Andrew Urquhart

ICMA Centre, Henley Business School

Date Written: July 13, 2017


Investor and media attention in Bitcoin has increased substantially in recently years, reflected by the incredible surge in news articles and considerable rise in the price of Bitcoin. Given the increased attention, there little is known about the behaviour of Bitcoin prices and therefore we add to the literature by studying price clustering. We find significant evidence of clustering at round numbers, with over 10% of prices ending with 00 decimals compared to other variations but there is no significant pattern of returns after the round number. We also support the negotiation hypothesis of Harris (1991) by showing that price and volume have a significant positive relationship with price clustering at whole numbers.

Keywords: Bitcoin, Price Clustering, Cryptocurrency

JEL Classification: C22, G12, G14

Suggested Citation

Urquhart, Andrew, Price Clustering in Bitcoin (July 13, 2017). Available at SSRN: or

Andrew Urquhart (Contact Author)

ICMA Centre, Henley Business School ( email )

University of Reading
Reading, Berkshire RG6 6BA
United Kingdom

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