How explosive are cryptocurrency prices?

Marc Gronwald* (Corresponding Author)

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

22 Citations (Scopus)
7 Downloads (Pure)


This paper revisits the issue of price explosiveness in cryptocurrency markets by analysing the prices of Bitcoin, XRP, Ether, and Litecoin not only expressed in US Dollars, but also the price of the latter three expressed in Bitcoin. There is strong evidence of explosive periods in cryptocurrency prices expressed in US Dollars, but also when XRP and Ether are expressed in Bitcoin. Whether or not these explosive periods can be interpreted as cryptocurrency bubbles requires a sufficient understanding of the fundamental value of cryptocurrencies. As this is currently insufficient, the term bubble should be used with more caution.
Original languageEnglish
Article number101603
Number of pages7
JournalFinance Research Letters
Early online date7 Jun 2020
Publication statusPublished - 1 Jan 2021

Bibliographical note

The author gratefully acknowledges useful comments by Beat Hintermann, Xin Jin, as well as participants of the 18th Journees LAGV - International Conference in Public Economics. Furthermore, the author is indebted to Sandrine Ngo for motivating me to study the economics of Bitcoins.


  • Cryptocurrencies
  • Bubbles
  • Explosiveness
  • Fundamental value
  • Intrinsic value
  • Fiat money


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