Premium kimchi is back. The price of Bitcoin (BTC) in South Korea is higher than the global average. Why is this?
In South Korea, one Bitcoin traded for $72,000
Data from local exchange platform Upbit show this Korean craze for the world’s largest cryptocurrency. Last night, Bitcoin traded at a price of 96,887,000 Korean won (KRW), or $72,000. At the same time, it was trading at “only” $68,700 elsewhere in the world.
This effect is known as “kimchi premium”, and is common when the Bitcoin price soars. South Korean markets are particularly greedy for BTC, driving up the price beyond the rest of the world.
This is also the case for the rest of the cryptocurrencies. On Upbit, a buying frenzy seems to have gripped users since last night. The exchange platform is only available in South Korea, but is second in terms of volume worldwide, just behind Binance :
24-hour trading platform volumes: Upbit is second
On Upbit’s spot markets, we can see that it’s also Shiba Inu (SHIB) that’s attracting users’ attention: its trading volume even exceeds that of Bitcoin. This is in line with the memecoin rush we mentioned yesterday. When crypto markets heat up, it’s often the latter that show the most consistent jumps.
South Korea positions itself in cryptocurrencies
Beyond rising prices, it’s also worth noting that South Korea has turned its attention to cryptocurrency regulation in recent months. With strict measures, such as new watchdog agencies, or even increased prison sentences for cryptocurrency fraudsters.
But also with a determination to continue to be a benchmark region. Last month, we learned that the government was considering exempting cryptocurrencies from taxation for another 2 years. This is a step backwards from the global trend, which has been particularly strict over the past 2 years.
All this combines to give this “premium kimchi”, with the price of Bitcoin soaring. In the rest of the world, it is this morning close to its absolute record
