Reverse premium persists in the Korean virtual asset market... BTC, ETH, and XRP all around -1.5%
Summary
- It was reported that the reverse premium phenomenon continues in the Korean virtual asset market.
- It was stated that all major virtual assets, including Bitcoin, Ethereum, and XRP, are experiencing a reverse premium of around -1.5%, where domestic prices are lower than international prices.
- An analysis was raised that due to the recent rapid rise of the KOSPI Index and the increase in the domestic stock market's market capitalization, investor funds are moving into the stock market, leading to a reduction in demand for virtual assets.
An unusual 'reverse premium' phenomenon continues in the domestic virtual asset (cryptocurrency) market.
According to Cryprice on the 12th, all major virtual assets such as Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) are showing a reverse premium state, with domestic prices lower than international prices. The Kimchi Premium indicator has remained around the -1.5% level across all assets.
The Kimchi Premium shows, as a percentage, how much more expensive virtual assets are on Korean exchanges compared to international ones. Generally, if it is 0% or above, it is considered a premium; if it is below 0%, it is considered a reverse premium.
Meanwhile, in the market, the recent sharp rise in the domestic stock market is being cited as a reason for the relative weakness of the domestic virtual asset market. Recently, the KOSPI Index surpassed the 3,200 mark for the first time in 3 years and 10 months, and the total market capitalization of domestic stocks exceeded ₩3,000 trillion for the first time ever. As a result, it is analyzed that funds from investors are flowing into the stock market, causing a temporary decline in demand for virtual assets.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.!["Will AI take our jobs?" Fear spreads…market rattled by a plunge in shares [New York Market Briefing]](https://media.bloomingbit.io/PROD/news/874408f1-9479-48bb-a255-59db87b321bd.webp?w=250)
