BitcoinBithumbBTC priceCointelegraph.comKimchi premiumSouth Korea

South Korea’s ‘Kimchi premium’ is back: Is the Bitcoin rally starting to heat up?

Demand for Bitcoin in South Korea is heating up as the country’s BTC premium rises over 5%.
The “Kimchi premium” is back. Bitcoin (BTC) is trading by more than 6% higher across major South Korean crypto exchanges as of March 29.Data from CryptoQuant show that the premium in the South Korean market was non-existent for many months and, in fact, dropped to around -6% in early February 2021 when BTC dipped below $30,000.The so-called Kimchi premium forms when the price of Bitcoin trades higher on South Korean exchanges over other markets.The return of this premium is a bullish sign suggesting that demand for Bitcoin in South Korea is likely outpacing supply.Bitcoin premium on Korean exchanges. Source: CryptoQuantWhy the Kimchi premium could be significant to BitcoinAlthough South Korea does not account for a majority share of the global Bitcoin market, it remains as one of the major exchange markets by daily volume.On CoinMarketCap, as an example, Bithumb is listed as the seventh-largest exchange in the world by daily trading volume, registering $1.3 billion in Bitcoin traded over the past 24 hours. The premium was especially high during past bull cycles, particularly in 2017 when BTC was trading well over 20% higher on South Korean exchanges compared to Coinbase and other large exchanges.The Kimchi premium shows two major trends. First, it shows that the overall market sentiment in South Korea remains healthy. Second, it indicates that more buyers are entering the market.Market sentiment in Korea is not bad. $BTC sellers are not Koreans obviously. …
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