Clustering in Bitcoin Balance

This study analyzes whether Bitcoin wallet balance data exhibit clustering. The analysis of Bitcoin rich list wallets reveals that both the integer and fractional parts of wallet balances display clustering characteristics especially at the numbers 00 and 99. Additionally, probit models are used to investigate the causes of clustering. Regression results indicate that number of transactions, wallet age and wallet balance are significant determinants of clustering. Balance has a major impact on the predicted probability of occurrence of certain digits. Clustering may be primarily attributable to behavioral factors, whereas rounding costs may inhibit the emergence of a behavioral tendency