• Bitcoin’s ‘Kimchi Premium’ in South Korea has gone to a discount, meaning it is cheaper to buy digital assets on Korean exchanges than on global ones.
• This signifies that local investors’ interest in Bitcoin has declined.
• The analytics platform CryptoQuant showed the fluctuations of the metric over the past month.
What is the Kimchi Premium?
The „Kimchi Premium“ is a metric which displays the difference in price between cryptocurrencies on global and Korean exchanges. Generally, when this premium goes into a discount territory, it indicates that buying digital assets such as Bitcoin is cheaper on Korean platforms than on Binance or other leading players – showing a decline in local users‘ interest.
Recent Fluctuations of The Kimchi Premium
The analytics platform CryptoQuant showed the fluctuations of the metric over the past month. During most days, the price of BTC was relatively higher on Korean platforms than outside of East Asia – usually meaning increased interest from local investors. However, for the first time since January 18th 2021, it has flipped and gone into a discount territory.
Current Prices of Bitcoin
Currently, one bitcoin trades at around $24,655 USD on Bithumb and $24,650 USD on Korbit – whereas it is priced at $24,800 USD on Binance and $24,850 USD on Coinbase. The figure is also lower on Upbit ($24700) and Coinone ($24648).
Bitcoin: Korea Premium Index Source: CryptoQuant A look at this graphical representation shows that during most days over the past few years ‚Kimchi Premium‘ has been generally higher in South Korea than elsewhere – indicating increased interest from investors there.
Overall this article discusses how South Korea’s ‚Kimchi Premium‘ recently shifted to a discount territory for the first time since January 18th 2021 – suggesting decreased investor interest within the country due to bitcoins being cheaper there than elsewhere globally.