In South Korea Bitcoin $99,465.0(BTC) is traded with a 8.24 percent premium compared to global markets. This ratio draws attention as the highest level recorded in the last 10 months. US President Donald Trump’s statement of heavy customs duties on Canada, Mexico and China reunited the concerns of the global trade war. Crypto Money MarketIn the last 24 hours, $ 2.2 billion liquidation took place. The increasing demand of South Korean investors to Bitcoin played a critical role in the rise of the local premium.
What is Kimchi Premium?
Kimchi premiumBitcoin refers to a higher price in South Korean exchanges than other global platforms. This is due to the fact that the country is closed to foreign investors due to capital controls. Local investors from overseas exchanges to take advantage of arbitrage opportunities crypto currency When he buys, he encounters a penalty risk.
On April 14, 2024, the premium rate was up to 13 percent, but now it was balanced at 8.24 percent. Experts emphasize that the closed structure of the crypto currency market in South Korea to external factors deepens the price difference. Especially altcoin In the country where the transactions are intense, stock exchanges such as Upbit are at the top of the global volume ranking.
Market Analysis and Expectations
Presto Research Analyst Min jung“Kimchi premium usually increases in bull markets, but may increase during panic sales,” he said. According to Jung, the premium may remain high if the sales pressure of US investors continue. Historical data show that the premium is at a level of 5 percent. If the market recovers, this difference is expected to return to normal.
Trump’s tax moves, inflation and trade war By triggering concerns, it negatively affected the crypto money market. In South Korea, the stable course of local demand has made the prices remain relatively constant despite the sales wave. According to data Upbit In January, it became the fourth largest stock exchange in the world with a trading volume of $ 187 billion.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
