The cost of bitcoin on South Korean crypto exchanges has reached $ 69 thousand.The experts explained what is pushing the price of a digital coin up in the Asian region and how it affects the global market
The cost of bitcoin on the South Korean crypto exchanges Bithumb and Korbit reached 77.9 thousand. At the same time, the average market price of the main cryptocurrency, according to CoinGecko, is at $ 58.5 thousand.
In the digital money space, this difference between the quotes in South Korea and the rest of the world is called the "kimchi premium." This concept arose back in 2017, when bitcoin was traded at $ 20 thousand, and on the South Korean exchanges its price rose to $ 24 thousand (20% more expensive). According to current figures, the "kimchi premium" is almost 18%.
The margin on bitcoin in South Korea can be explained by the fact that it is an extremely developed country with an innovative economy, explained Janis Kivkulis, a leading strategist at the investment company EXANTE.
Growth completion signalThe "kimchi premium" in 2017 was one of the signals that indicated the end of the bullish trend and the transition to crypto winter
However, now, in his opinion, the fundamental conditions in the market are very different from the events of four years ago. First of all, the current market is ruled by big business, not impulsive retail investors.Bitcoin prospects in the Asian region
South Korea and Asia in general is a very specific region, where cryptocurrencies can reach off scale levels. He predicts that the cost of bitcoin on South Korean crypto exchanges can reach $ 75 thousand and more, but the strategist believes that the right question in this situation is how this can affect the entire market as a whole.
“South Korean bitcoin trading volumes are less than 2% of global ones, which means that no matter how much Koreans are willing to pay for bitcoin, broad indices will take into account only global prices, excluding the peculiarities of the country's prices.
