PiCK
Kimchi Premium Surpasses 10%...Highest in 10 Months
Summary
- It was reported that the Kimchi Premium for Bitcoin and major cryptocurrencies surpassed 10%, reaching the highest level in 10 months.
- Analyst Min Jeong explained that this Kimchi Premium phenomenon occurs when the selling pressure on Korean exchanges is lower than the global market.
- It is analyzed that the possibility of the Kimchi Premium maintaining the 10% range for a long time is low, and it is likely to fall to the 5% level when the market stabilizes.
The Kimchi Premium for major cryptocurrencies like Bitcoin (BTC) has surpassed 10%.
According to the cryptocurrency market comparison platform Cryprice, as of 1:36 PM on the 3rd, the Bitcoin Kimchi Premium recorded 10.21%. This means that the domestic price is more expensive than overseas.
It is the first time in 10 months since April last year that the Bitcoin Kimchi Premium has exceeded 10%. At that time, the Kimchi Premium was around 13%.
The Kimchi Premium for major altcoins like Ethereum (ETH) and Ripple also surpassed 10%. The Bitcoin Cash (BCH) Kimchi Premium soared to 13%. Min Jeong, an analyst at the cryptocurrency research firm Presto Research, explained, "This phenomenon occurs when the selling pressure on Korean exchanges is relatively lower than the global market," adding, "If the selling pressure from U.S. investors continues, the Kimchi Premium is likely to remain high."
However, it is analyzed that the possibility of the Kimchi Premium maintaining the 10% range for a long time is low. Analyst Min Jeong stated, "The Kimchi Premium has maintained an average level of about 5%," and "If the market stabilizes and rebounds, the Kimchi Premium is likely to fall to the 5% level."
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
