South Korea Experiences ‘Kimchi Premium’ as Bitcoin Surges
The recent surge of bitcoin to over $41,000 has led to increased trading activity in South Korea. Major South Korean cryptocurrency exchanges, including Upbit, Bithumb, Korbit, and Coinone, are currently seeing a $1,500 premium on bitcoin compared to global prices.
Bitcoin’s Global Trading Volume and Dominant Fiat Currencies
On December 4, bitcoin reached a peak value of $42,400 per unit. On December 5, the global 24-hour trading volume for bitcoin was recorded at a substantial $95.8 billion, with BTC accounting for $39 billion of these trades. The most prominent fiat currencies traded against bitcoin were the USD, KRW, EUR, GBP, and JPY. USD dominated with 14.87% of total trades, followed by KRW at 4.71%.
The Persistence of the ‘Kimchi Premium’ in South Korea
The ‘Kimchi premium’ in South Korea, where bitcoin trades at a higher price, has continued. Upbit, a leading cryptocurrency exchange in South Korea, has recorded $3.82 billion in trades in the last 24 hours. Bitcoin is currently priced at $43,272 on Upbit, which is $1,503 higher than the global average.
Premium Trends in Other Regions and Digital Currencies
Similar premium trends are occasionally observed in other regions such as Hong Kong, Japan, Malaysia, the Philippines, and Thailand. Ethereum is trading at an elevated rate of $2,310 per coin on Upbit compared to the global average of $2,234. Solana is also trading at a premium of $63.27 per unit on Upbit, surpassing its global average of $61.28. Bithumb, Coinone, and Korbit are witnessing similar trends with bitcoin, ethereum, solana, and other digital currencies.
Bitcoin Cash Premium in South Korea
Bitcoin cash, with a global average of $251, is trading at $259 per coin in South Korea.
Hot Take: South Korea’s Market Impact on Bitcoin
The surge in bitcoin’s price has led to increased trading activity in South Korea, with major exchanges seeing a premium on bitcoin compared to global prices. This phenomenon, known as the ‘Kimchi premium,’ has persisted in South Korea and occasionally occurs in other regions as well. It reflects the high demand and interest in cryptocurrencies in South Korea, driving up their prices. The premium on bitcoin and other digital currencies in South Korea highlights the country’s significant influence on the global crypto market.
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