Kimchi Premium to około 15%
At different trading floors, the price of BTC is sometimes higher than in the whole world. When it comes to South Korean exchanges, the difference between Bitcoin prices on them and other world exchanges is called a kimchi premium
At the end of 2020, this indicator entered the negative zone. However, it has been growing steadily since 2021.
Why there is a kimchi premium
The South Korean financial system is closed and it is difficult for market makers to adjust prices. Demand is growing steadily, and with it quotes on the stock exchange.
In the previous bullish cycle of 2018, the Kimchi Premium was 54%. That's a huge difference. However, this did not last long. After a sharp rise to $20,000, the price of Bitcoin began to collapse.
Is it possible to consider that the increase in the kimchi premium is a worrying sign? It's possible. However, analysts from Crypto-Uant believe that there will be no repeat of the situation in 2018.
Bitcoin has a stable base. Also, the volume of trading on the Korean exchanges is only 1.7% of the global index.
However, now in South Korea for Bitcoins give $67,400. Kimchi Premium, as we mentioned, is about 15%. In many ways, this is due to the FOMO effect.
Demand for Bitcoin is growing as investors are afraid to miss out on the benefit. There are predictions in the press that Bitcoin will soon be worth $300,000 and $1,000,000. This probably forces investors to buy up Bitcoin as soon as the bullish trend begins.
Where you can buy Bitcoins safely and profitably
Here are the top 5 cryptocurrency exchanges that are in demand from investors:
The list is made taking into account the convenience of the interface, the security of trading crypto, reliability, support activity.
The article has an informational character, reflects the opinion of the author. Before you make a decision, analyze the market situation.