- After a brief pullback on Wednesday, the world’s largest cryptocurrency, Bitcoin (BTC), experienced a healthy recovery.
- Kimchi premium refers to the difference in cryptocurrency asset prices between South Korean exchanges and exchanges abroad.
- In December 2017, in the midst of BTC’s bull run, South Korean exchanges were trading Bitcoin at almost 50% higher prices than global exchanges.
Bitcoin’s Premium Price in South Korea Reaches 10%: CryptoQuant CEO comments on the current situation!
Bitcoin Sees Higher Prices in South Korea
After a brief pullback on Wednesday, the world’s largest cryptocurrency, Bitcoin (BTC), experienced a healthy recovery. The Bitcoin (BTC) price increased by 4% in the last 24 hours, surpassing $66,000 once again. According to a recent statement by CryptoQuant CEO Ki Young Ju, the premium price of Bitcoin in South Korea has impressively reached 10%, marking the highest level in the last two years.
Ju highlighted the resurgence of South Korean retail investors in the cryptocurrency market, indicating renewed interest and confidence among local traders. Kimchi premium refers to the difference in cryptocurrency asset prices between South Korean exchanges and exchanges abroad. This premium has been showing a parallel rise with the BTC price since the beginning of February.
According to data from CryptoQuant’s on-chain data, the Korea Premium Index increased from 5.19 on February 28 to 6.84 on March 5. This increase coincided with Bitcoin reaching a new all-time high of over $69,200 on March 5, attributed to the ongoing investments in Bitcoin ETFs in the United States.
Unlike the U.S., there are no Bitcoin ETFs in South Korea to see strong institutional participation. Therefore, retail spot purchases significantly boost prices on South Korean exchanges.
In December 2017, during BTC’s bull run, South Korean exchanges were trading Bitcoin at almost 50% higher prices than global exchanges. As a result, CoinMarketCap had to delist some Korean exchanges due to “significant price differences with the global average.”
Similarly, during the 2021 bull run, the Kimchi premium reached 21.56% on May 19 when the price of Bitcoin surpassed $36,000 and eventually hit a new all-time high in November 2021.
South Korea Aiming for Spot Bitcoin ETF Approval
South Korea, known for its technology-savvy population, is considering approving Bitcoin Spot ETFs. According to a recent report, Financial Supervisory Service governor Lee Bok-hyun mentioned in a radio interview that officials are currently discussing legalizing Bitcoin Spot ETFs in the country.
However, classifying BTC as a fundamental asset remains a significant concern for South Korean regulators. Although financial authorities stated in January that they had no plans to regulate Bitcoin ETFs, the sale of spot Bitcoin ETFs by brokerage firms raised questions within the framework of the Capital Market Act.
