- Bitcoin price in South Korea has surpassed $68,000.
- Meanwhile, the top crypto is trading at about $59,000 globally.
- The price difference is due to the Kimchi Premium phenomenon.
South Korea’s Kimchi Premium has struck again. This time the marvel has driven the Bitcoin price over $68,000. In contrast, Bitcoin is currently trading at $59,000 globally.
In fact, based on trading data from Bithumb and Korbit, the BTC/KRW trading pair is sitting at 77,393,000 KRW or $68,853.
Kimchi Premium is the term that describes the price difference between Korean crypto exchanges and exchanges outside the East Asian country. The difference has occurred several times in the past, including during the 2017 crypto boom and the 2018 crash.
With the growing Kimchi premium, I did some digging on the BTC performance following previous spikes in the Korean BTC pair.
While it’s impossible to say whether the Kimchi premium has peaked or if it will continue growing onwards, it makes me worried. pic.twitter.com/lx0YMQgLAr
— Vetle Lunde (@VetleLunde) April 5, 2021
To clarify, the term premium is a bit of a misnomer as the effect can also be negative, as seen in 2018.
Notably, the price difference is being attributed to Korean exchanges not having enough crypto assets to meet high trader demand. The South Korean crypto market has been hard-hit by the ever-tightening rules in the nation. Binance has exited the Asian nation, while OKEx will officially close on Thursday (April 7).
The South Korean government now requires crypto exchanges to disclose user data and has made it harder to send money out of the country. The measures have made it increasingly harder for crypto exchanges to operate in the country. Binance cited liquidity problems as its reason for closure, while OKEx refrained from offering an excuse.
Meanwhile, despite the tighter trading rules, the South Korean crypto market is booming. Of note, crypto trading volumes in the country recently surpassed stock trading volumes.
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