South Korea sees an increase in Kimchi Premium due to heightened demand for Bitcoin amidst political and economic instability. Analysts predict Bitcoin might reach $200,000 by 2025 driven by reduced supplies and institutional interest.
Increase in Kimchi Premium in South Korea
The Kimchi Premium in South Korea has reached a four-month high, reflecting strong investor demand as the country faces political and economic turmoil. The premium, representing the price difference between Bitcoin on South Korea's Upbit exchange and global exchanges like Coinbase, has increased to 3-5%.
Political and Economic Instability
The increasing interest in Bitcoin is influenced by South Korea's ongoing challenges, including political instability, a weakening currency, and inflation fears. President Yoon Suk Yeol was impeached in December 2024, contributing to political chaos. The South Korean won has weakened by 0.35% against the U.S. dollar, prompting investors to turn to Bitcoin as a store of value.
Bitcoin Growth Forecasts to 2025
Analysts believe Bitcoin could reach as high as $200,000 by mid-2025. Key factors include inflation post the April 2024 halving, reduced supply, and heightened institutional interest. In 2024, investments in Bitcoin ETFs have already hit new records, boosting the price further.
The heightened interest in Bitcoin in South Korea, along with analysts' forecasts, suggest potential growth for the cryptocurrency in the coming years. Elevated demand is linked to economic and political instability, as well as anticipated shifts in international cryptocurrency regulation.
