What Led to Bitcoin’s Surpassing of $68,000 and the Kimchi Premium on Upbit?
Bitcoin recently achieved a new all-time high (ATH) of over $68,000, with expectations soaring for it to surpass $69,000 shortly. Notably, South Korea’s largest cryptocurrency exchange, Upbit, recorded a price of 96,530,000 Korean won, equivalent to $72,000, on March 5th. This 6% variance in Bitcoin’s price compared to exchanges like Binance and Coinbase is attributed to the “kimchi premium.” This premium also affected Ethereum’s price, as observed in ETH/KRW trading pairs on Upbit.
what is Kimchi Bonus?:
The kimchi premium refers to the price differential between Bitcoin’s value on South Korean exchanges and global platforms like Binance and Coinbase. This phenomenon first emerged in early 2016 and has since been a notable feature of South Korea’s cryptocurrency market. While historical trends suggest that significant increases in the kimchi premium have sometimes correlated with subsequent decreases in Bitcoin’s price, this correlation is not universally confirmed by data.
Analysis of the Kimchi Premium Increase:
Despite past fluctuations, experts attribute the recent surge in the kimchi premium to heightened purchasing demand among South Korean investors. Additionally, factors such as Bitcoin’s halving event are seen as important catalysts influencing this trend. The rise in demand from South Korean investors suggests growing interest and participation in the cryptocurrency market, contributing to the kimchi premium observed on exchanges like Upbit.
