Bitcoin is currently trading at around $68,000 in South Korea on Bithumb as “Kimchi Premium” returned. On the other hand, the king coin is trading at about $10,000 lower on CoinMarketCap. At press time, Bitcoin is at $58,960 on the trading platform.
The Kimchi Premium is the spread between the price of BTC on Korean exchanges and BTC on Western exchanges.
Generally, there has been an increase in the global demand for Bitcoin in different parts of the world. The Kimchi Premium is proof of this, as it directly depicts the state of South Korea’s Bitcoin market.
Also, Ether (ETH) is trading higher on Bithumb, compared to CoinMarketCap. The second-largest cryptocurrency by market cap is currently around $2,446 on Bithumb and at $2,103 on CoinMarketCap. ETH stands at a market value of $242.6 billion.
Although there is the Kimchi Premium, it is impossible to purchase Bitcoin at a lower price on other exchanges and sell in South Korea at a higher price. This is because trading platforms in South Korea do not accept foreign clients as a result of local regulations.
Simultaneously, investors in Korea can not acquire cryptocurrencies at lower prices on other exchanges as global exchanges do not accept Korean won.
The first appearance of the Kimchi Premium was in 2016, as stated by the University of Calgary. The Kimchi Premium was at an average of almost 4.80% between 2016 and 2018.