"Kimchi Premium" Reappears, South Korean Bitcoin Exchange Market Overheats
On January 4, 2021, Doo Wan Nam, head of MakerDAO Korea, said on Twitter that the price of cryptocurrency on Korean trading platforms has begun to rise at a premium (kimchi premium) compared to other platforms, and is currently between 3.5%-5.5%. Among them, the Bitcoin premium is about 3.7%, and the Ethereum premium is about 4.5%.
The so-called kimchi premium is the "overflow price" that investors need to pay extra to buy cryptocurrencies such as Bitcoin in the Korean market. Prior to this, South Korea had repeatedly experienced "kimchi premiums".
At the end of 2017, the prices of Bitcoin and Ethereum in the global market exceeded 19,500 U.S. dollars and 1,500 U.S. dollars, respectively. At the same time, the prices of South Korean Bitcoin and Ethereum exceeded 25,000 U.S. dollars and 2,000 U.S. dollars, and the transaction premium was as high as 30%.
In July 2018, the premium of Korean kimchi appeared again, and the main tokens began to experience price changes. The prices of some tokens have risen by 300% to 600% based on the average price level in the global market; in April 2019, the price of Bitcoin traded in Korean won in South Korea also experienced a premium over kimchi on USD trading platforms such as Coinbase.
NabobTrade Research Institute believes that South Korea’s "Kimchi Premium" reappears, indicating that the current South Korean Bitcoin market trading sentiment is too hot. Looking back at the "Kimchi Premium" that has appeared many times before, we can find that it is very similar to the overall trend of the cryptocurrency market. "Kimchi premium" generally appeared before the start of the bull market, but the current bull market in the crypto market has actually officially started since Bitcoin halved. The recent increase in the Korean trading platform kimchi premium indicates that this bull market continues.
BTC contracted sideways during the day, and heavy in the evening callback
According to data from the NabobTrade trading platform, after a slight correction last night, BTC continued to shrink at 33,200 in the day, and then pulled back again in the evening, as low as 31134USDT. The trading volume was accompanied by a significant increase, basically turning out 1/2 of the previous increase. From the one-hour level, the two recent callbacks were accompanied by an increase in trading volume, and there was no rapid anti-packaging from multiple parties, and the strength of the short side has increased to a certain extent. In terms of daily level, BTC today ushered in its first decline after 5 consecutive positives, which basically reversed yesterday’s gains. In the evening, continue to pay attention to changes in trading volume and the supporting role of the 31000 integer mark below.
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