[Market] Bitcoin briefly surpassed $124,000…kimchi premium 1.12%

Minseung Kang

Summary

It reported that Bitcoin's price surpassed $124,000 and the kimchi premium was 1.12%.
Analysts say that buying pressure is flowing into Bitcoin, an alternative store of value, due to the U.S. federal government shutdown.
The market said that investor interest in alternative assets like Bitcoin has increased due to dollar weakness and the expansion of fiscal uncertainty.

Bitcoin (BTC) price surpassed $124,000.

According to Binance on the 5th, as of 12:32 p.m. that day Bitcoin was trading at $124,125 (₩176,530,000 on Upbit), up 1.66% from the previous day.

According to the crypto asset data platform Cryprice, Bitcoin's kimchi premium that day was 1.12%. This means it is trading at a somewhat higher price on domestic exchanges than the global rate.

Just a week ago Bitcoin remained in the $100,000 range, but after the U.S. federal government shutdown took effect, buying pressure surged and it recovered the $120,000 level in a short period. Market analysts say the suspension of government functions is weighing on confidence in the dollar, and funds are moving into alternative stores of value such as Bitcoin and gold.

Bloomberg reported that Wall Street investors interpret this flow as a 'Debasement Trade'. This refers to the phenomenon where assets move from the dollar to Bitcoin or gold when concerns about currency value decline rise. They explain that as fiscal uncertainty widens, dollar weakness deepens and alternative assets like Bitcoin benefit.

CNBC also reported that major investors are increasing allocations to nontraditional assets such as gold and crypto assets to prepare for political and economic risks.

Seasonal factors are also supporting the uptrend. There is significant expectation for 'Uptober', when Bitcoin tends to be strong every October. In fact, Bitcoin has recorded gains in October in 9 out of the past 10 years.

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