During the first week of April, South Koreaâ€™s â€˜kimchi premiumâ€™ on domestic cryptocurrency exchanges had jumped over 18%, but then leveled off, equalizing with global exchange rates over the last two weeks. On Monday, as bitcoin prices spiked 8% higher surpassing the $54k zone, in South Korea, the premium on bitcoin climbed 4.56% higher than the most trading platforms worldwide during the last 24 hours.
â€˜Kimchi Premiumâ€™ on Domestic South Korean Exchanges Starts to Rise Again
Bitcoin (BTC) and cryptocurrency markets have improved on Monday as the entire crypto-economy has risen by 3% since yesterday. BTC prices tapped a high of $54k during the early morning trading sessions and BTC currently rests just below the $54k zone at the time of writing.
In addition to the bitcoin price jump, the well known â€˜kimchi premiumâ€™ in South Korea has returned. Currently, domestic exchanges like Korbit and Bithumb are trading for $3k more than most foreign exchanges.
Data shows that Bithumbâ€™s BTC/KRW spot market volumes have increased by 13.2% today and a single bitcoin is swapping for prices between $56,345 to $56,727 or between 625,970,000 to 663,040,431 won. Thatâ€™s a gap of 4.56% with the â€˜kimchi premiumâ€™ and on Bithumb a number of other popular crypto assets are seeing premiums as well. ETH, for instance, is swapping for $100 more per ether on domestic exchanges. While XRP only has a $0.10 premium on Bithumb at the time of writing.
The South Korean crypto trading platform Korbit has similar premiums, but BTC prices are a touch lower than Bithumbâ€™s current BTC prices. ETH prices and XRP prices on Korbit are relatively the same, showing a much smaller â€˜kimchi premiumâ€™ on those crypto assets than BTCâ€™s higher premium. Korbitâ€™s collective trade volume for today for every trading pair is well over $100 million but Bithumb, on the other hand, has $2.3 billion in reported trade volume today.
Weekend Trading Volume Increased by 28%
Overall, analysts are positive about BTCâ€™s price jump, in general, as the weekendâ€™s trading sessions and into Monday have shown bitcoin bulls are not giving up so easily. In a note to Bitcoin.com News, Alex Kuptsikevich, Fxpro senior financial analyst explained that overall trade volumes have increased this weekend.
â€œThe weekend showed that the crypto market in general and Bitcoin, in particular, are not ready to give up,â€ Kuptsikevich said. â€œMarket participants were waiting for the weekend results to see how the retail sector would react. At one point, Bitcoin reached a local bottom at $47,250, but this drop significantly increased the demand for the first cryptocurrency as the asset began to be bought by investors who were waiting for a discount.â€
The analyst added:
Stats further show that the South Korean won captures close to 2% of BTCâ€™s global trade volume today and the won is BTCâ€™s sixth-highest trading pair. During the course of the weekend, volumes on South Korean exchanges have shown a steep increase as well and Mondayâ€™s BTC price spike has fueled the volumes on domestic platforms in the country.
The recent premium on South Korean exchanges follows the countryâ€™s regulatory decision to investigate the premiums and foreign investors leveraging arbitrage.
What do you think about the â€˜kimchi premiumâ€™ on domestic South Korean exchanges? Let us know what you think about this subject in the comments section below.
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