Cryptos:  11,064Exchanges:  389Market Cap:  $1,523,509,961,83224h Vol:  $107,827,640,179Dominance:  BTC: 47.2% ETH: 17.9%ETH Gas:  36 Gwei
Cryptos:  11,064Exchanges:  389Market Cap:  $1,523,509,961,83224h Vol:  $107,827,640,179Dominance:  BTC: 47.2% ETH: 17.9%ETH Gas:  36 Gwei

What is the ‘Kimchi Premium’ and why is it a ‘top’ indicator for Bitcoin?

HeadlinesNewsWhat is the ‘Kimchi Premium’ and why is it a ‘top’ indicator for Bitcoin?

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What is the ‘Kimchi Premium’ and why is it a ‘top’ indicator for Bitcoin?

CryptoSlate3 months ago
Published on April 05, 2021 01:14 GMT+0edited on April 05, 2021 01:22 GMT+0

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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.

Bitcoin mispricing

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