During the first week of April, South Korea’s ‘Kimchi premium’ on domestic cryptocurrency exchanges had risen more than 18%, but then leveled off, on par with global exchange rates for the past two weeks. On Monday, as bitcoin prices rose 8% above the $ 54k zone, in South Korea, the premium on bitcoin climbed 4.56% higher than most trading platforms worldwide over the past 24 hours.
‘Kimchi Premium’ on domestic South Korean exchanges is starting to rise again
Bitcoin (BTC) and cryptocurrency markets improved on Monday as the entire crypto economy is up 3% since yesterday. BTC prices hit as high as $ 54k during the early morning trading sessions and BTC is currently resting just below the $ 54k zone at the time of writing.
In addition to bitcoin’s price hike, the well-known ‘kimchi premium’ has returned in South Korea. Currently, domestic exchanges such as Korbit and Bithumb are trading for $ 3k more than most foreign exchanges.
Data shows that Bithumb’s BTC / KRW spot market volumes are up 13.2% today, trading a single bitcoin for prices between $ 56,345 and $ 56,727 or between 625,970,000 and 663,040,431 won. That’s a 4.56% difference from the ‘Kimchi premium’ and on Bithumb a number of other popular crypto assets are also seeing premiums. For example, ETH trades for $ 100 more per ether on domestic exchanges. Whereas, at the time of writing, XRP only has a $ 0.10 premium on Bithumb.
South Korean crypto trading platform Korbit has similar premiums, but BTC prices are slightly lower than Bithumb’s current BTC prices. ETH prices and XRP prices on Korbit are relatively the same and show a much smaller ‘kimchi premium’ on those crypto assets than BTC’s higher premium. Korbit’s collective trading volume for each trading pair today is well over $ 100 million, but Bithumb, on the other hand, reported $ 2.3 billion in trading volume today.
Weekend trade volume increased by 28%
Overall, analysts are positive about BTC’s price hike in general as the trading sessions over the weekend and through Monday have shown that bitcoin bulls aren’t giving up that easily. In a note to Bitcoin.com News, Alex Kuptsikevich, Fxpro’s senior financial analyst, explained that overall trading volumes have increased over the weekend.
“The weekend showed that the crypto market in general and Bitcoin in particular are not ready to give up,” said Kuptsikevich. “Market parties were waiting for the weekend’s results to see how retailers would react. At one point, Bitcoin hit a local low of $ 47,250, but this drop significantly increased demand for the first cryptocurrency as it began to be actively bought by investors waiting for a rebate. “
The analyst added:
Also positive is that with the price recovery, the trading volume also increased by 28%, which reinforced the positive sentiment. A stock market recovery could be a supportive factor for the crypto market in general.
Statistics further show that the South Korean won is capturing nearly 2% of BTC’s global trading volume today and the won is BTC’s sixth highest trading pair. Over the weekend, volumes on the South Korean exchanges also saw a sharp rise and the BTC price hike on Monday fueled volumes on domestic platforms in the country.
The recent premium on the South Korean stock markets follows the country’s regulatory decision to investigate the premiums and foreign investors using arbitrage.
What do you think about the ‘Kimchi Premium’ on domestic South Korean exchanges? Let us know what you think about this topic in the comments section below.
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