The Kimchi Premium for Bitcoin in South Korea reached a level of 12%, the highest since early 2022. However, this increase was driven by the influence of the U.S. Dollar Index, rather than local demand.
Impact of U.S. Dollar Index on Bitcoin
The rise of the U.S. Dollar Index (DXY) was the main factor in the increase of the Bitcoin premium, rather than the activity of Korean buyers. This is due to Bitcoin's valuation in U.S. dollars, highlighting the impact of the rising DXY.
Limited Impact from Korean Market Activity
CryptoQuant's analysis highlights that only a small portion of the upward pressure on Bitcoin's price is linked to Korean traders. The trend was more influenced by global factors, particularly the impact of the U.S. Dollar Index.
Coinbase Premium Reflects Global Trends
The Coinbase Premium remained positive, indicating similar trends in international markets. Despite a 3.5% drop, Bitcoin quickly recovered, maintaining its position at $95,000.
The stability of Bitcoin amidst currency and asset market fluctuations underscores its significance. The rising Kimchi Premium in South Korea confirms its vulnerability to external market factors, rather than solely local demand shifts.
