Bitcoin has soared, doubling its value since the start of the year. Yet, intriguingly, the famed âKimchi premiumâ in South Korea remains absent in this current surge of bullish activity. This is a notable deviation from previous bull markets, where the phenomenon was prominently observed. In fact, this time around, BTC prices in South Korea are trading at a discount compared to other parts of the world.
Bitcoin Skyrockets, Yet South Korea Experiences a âKimchi Discountâ Instead of the Usual Premium
This article was published more than a year ago. Some information may no longer be current.
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Despite the Won Ranking as the 5th Largest Bitcoin Trading Pair, South Korea Sees Unprecedented âKimchi Discountâ
This month, bitcoin has exhibited remarkable performance, appreciating 27.9% against the U.S. dollar. As of 10:15 a.m. EDT, BTC hovered just above the $34K mark, boasting a seven-day gain of 14.8%.
Intriguingly, during this upward trajectory, bitcoin prices on South Koreaâs top crypto exchanges, Upbit and Bithumb, are slightly lower. This scenario stands in stark contrast to the âKimchi premiumâ observed in previous years, which typically manifested during crypto bull runs, pushing BTCâs value several hundred dollars above the global average.
Currently, bitcoin trading is thriving in South Korea, with cryptocompare.com data revealing that the Korean won is bitcoinâs fifth largest trading pair, accounting for 3.73% of all BTCâs global trades.
Despite BTCâs global trading price of $34,059 at the time of writing, it is exchanging hands at $33,902 on Upbit and approximately $33,869 on Bithumb. This translates to a $157 and roughly $190 per unit discount on Upbit and Bithumb, respectively.
Contrary to the âKimchi premium,â where not just BTC, but also other cryptocurrencies like XRP and ETH would experience price elevations, the current discounts are uniquely impacting bitcoinâs value.
Ethereum, for example, is exhibiting a minor discount discrepancy of around $10-15 per unit. On the trading front, Bithumb recorded approximately $408 million in global trades on Friday, while Upbit saw a much higher $1.7 billion. Among Bithumb, Coinone, and Korbit, Upbit dominates in the country, commanding nearly 80% of South Koreaâs crypto trading volume.
South Koreaâs government and regulators from the country have tried to curb the âKimchi premiumâ and put the trend to an end. While there is no sign of a premium, a âKimchi discountâ still brings an opportunity for arbitrage.
What do you think about the lack of the âKimchi premiumâ during bitcoinâs current upswing? Share your thoughts and opinions about this subject in the comments section below.
