Zero-Fee Trading and Price Clustering in Cryptocurrency Pairs

This study analyzes the impact of zero-fee trading on price clustering in BTCBUSD and BTCUSDT cryptocurrency pairs using one year of data. The study confirms that observed frequency distributions deviate from a uniform distribution and that zero-fee trading has a significant effect on the distribution of observed frequencies. The study also finds that price level and trading volume positively correlate with clustering probability, while volatility has a negative correlation. These findings have implications for market participants and policymakers and emphasizes the significance of taking into account market conditions and transaction fees while examining the clustering of prices in financial markets