Bitcoin is trading at nearly $66,000 in South Korea. This is not a typo nor a faulty API giving false data either, but a notorious market anomaly from 2017-18 that marked the ‘top’ of the crypto market at the time.
Called the ‘Kimchi Premium’ (after the popular Korean fermented cabbage dish), the phenomenon occurs as crypto-frenzied traders in South Korea punt for outsized opportunities and upside on Bitcoin and lay bets on higher prices.
But the supply just doesn’t match demand, and—as a basic rule of economics and markets and markets—the prices end up pumping far more than other global markets.
Kimchi premium now more than 16% and widening. On Bithumb, BTC is effectively trading at $66,300 pic.twitter.com/vUSoshBtFx
— Larry Cermak (@lawmaster) April 5, 2021