After hitting a record $2 trillion valuations, the cryptocurrency market has lost nearly 6% in the last few hours as the Kimchi premium in South Korea finally loses steam. In few hours, the overall crypto market has lost more than $100 billion and is currently at $1.86 trillion.
Bitcoin has lost 3.75% and has slipped below $56,500 after holding $57K for quite some time. However, much of the damage has happened in the altcoin space which has been doing fantastic over the last week. The altcoin space alone has contributed to 80% market correction losing nearly $80 billion in less than 24 hours.
Kimchi premium is dropping significantly.
Live Chart https://t.co/L15XuxqABJ pic.twitter.com/0UrPYzHN0C
— CryptoQuant.com (@cryptoquant_com) April 7, 2021
On the other hand, CryptoQuant CEO Ki-Young Ju confirmed that the trading volumes on South Korean exchanges like Upbit Global and Bithumb Global have shot significantly. Thus, he adds that the crypto market drop is related to ‘Kimchi pullback’.
It seems someone finally figured out how to arbitrage this Kimchi premium opportunity.
The trading volume in 30min time frame on @upbitglobal, the largest Korean exchange, was bigger than @Binance’s.
This drop seems related to Kimchi pullback. https://t.co/kLro1of0uS pic.twitter.com/YJru97A3pb
— Ki Young Ju 주기영 (@ki_young_ju) April 7, 2021
Adding further evidence to Kimchi arbitrage, Ju writes:
“@BithumbOfficial, one of the largest exchanges in Korea, $BTC inflow mean has been increasing while all exchanges’ is decreasing. It seems some whales are depositing BTC to Korean exchanges”.
Story continues on CoinGape