Bitcoin

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<h2 id="key-points">Key Points</h2>
<ul>
 <li>The ‘Kimchi Premium’ for Bitcoin in South Korea has decreased to 1.54%, indicating a decline in cryptocurrency interest.</li>
 <li>South Korea’s top five crypto exchanges have seen a significant drop in trading volumes.</li>
</ul>
<p>Bitcoin’s price gap in South Korea, commonly known as the ‘Kimchi Premium’, has seen a steady decrease since mid-April.</p>
<p>This premium, which represents the price difference of Bitcoin or other cryptocurrencies in South Korea compared to other markets, was at 1.54% on Friday afternoon, as per data from CryptoQuant.</p>
<h2 id="why-the-kimchi-premium-exists">Why the Kimchi Premium Exists</h2>
<p>The Kimchi Premium is a result of South Korea’s cryptocurrency market being inaccessible to foreign investors.</p>
<p>In addition, local investors who purchase large volumes of cryptocurrencies from overseas exchanges for arbitrage could face penalties under South Korea’s Foreign Exchange Transactions Act.</p>
<p>As South Korea’s local supply of cryptocurrencies is limited, a spike in demand often results in a larger price gap.</p>
<p>In March, the premium hit a high of 11.44% when <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> reached a new all-time high.</p>
<h2 id="decreased-trading-volumes">Decreased Trading Volumes</h2>
<p>The decrease in the Kimchi Premium coincides with a reduction in trade volumes on South Korea’s top five cryptocurrency exchanges.</p>
<p>These exchanges, which include Upbit, Bithumb, Coinone, Korbit, and Gopax, dominate the local market.</p>
<p>According to CoinGecko data, the combined trading volume of these five exchanges was $2 billion in the past 24 hours.</p>
<p>This figure is significantly lower compared to the nearly $18 billion reported on March 6.</p>
<p>Several factors may have contributed to South Korea’s diminished enthusiasm for cryptocurrencies.</p>
<p>These include geopolitical tensions in the Middle East and continued net outflows in U.S. spot Bitcoin exchange-traded funds.</p>
<p>Additionally, there have been few events showcasing Bitcoin’s value since the last halving event.</p>
<p>At the time of writing, Bitcoin was trading at approximately $63,018, up 2.9% over the past 24 hours.</p>

South Korean Bitcoin Craze Wanes, Shrinking the ‘Kimchi Premium’

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