Bitcoin in South Korea is trading at a premium of 8.24% compared to global markets, coinciding with economic tensions and trade barriers.
What is Kimchi Premium?
The term 'kimchi premium' refers to the phenomenon where Bitcoin on South Korean exchanges is priced higher than on global platforms. This is due to South Korea's capital controls, restricting foreign investor access.
Market Analysis and Expectations
Presto Research Analyst Min Jung noted that the 'kimchi premium' tends to rise in bull markets but can also increase during panic selling. If selling pressure from U.S. investors persists, the premium might stay elevated.
Impact on the Cryptocurrency Market
U.S. economic policies are sparking inflation fears and trade disputes, negatively affecting the crypto market. However, strong local demand in South Korea helps keep prices stable.
The 'kimchi premium' situation highlights how local economic conditions can impact global cryptocurrency markets. South Korea remains a focus of attention.
