Kimchi Premium is back. Bitcoin (BTC) is trading at over 6% on major South Korean cryptocurrency exchanges as of March 29.
CryptoQuant data shows that the premium in the South Korean market has not been around for months and actually fell to around -6% in early February when BTC fell below $ 30,000.
The so-called kimchi premium is created when the price of bitcoins on the South Korean exchanges is higher than in other markets.
The return of this premium is an optimistic sign that the demand for bitcoin in South Korea is likely to outpace supply.
Why the Kimchi Prize May Be Important to Bitcoin
Although South Korea is not the main share of the global bitcoin market, it is still one of the largest foreign exchange markets by daily volume.
On CoinMarketCap, for example, Bithumb is listed as the seventh largest exchange in the world by daily turnover, recording $ 1.3 billion in bitcoins sold in the last 24 hours.
The premium has been particularly high in recent bull cycles, especially in 2017, when BTC traded more than 20% higher on South Korean exchanges compared to Coinbase and the other major exchanges.
The fine kimchi shows two big trends. First, it shows that general market sentiment in South Korea remains good. Second, it indicates that more buyers are entering the market.
The award was back in the final weeks before Visa announced that it would process US Dollar Coin (USDC) transactions on the Ethereum blockchain.
When the news was announced, bitcoin and ether (ETH) prices were up about 5% in three hours, triggering a strong recovery in the cryptocurrency market. This announcement could boost momentum for the rapid pace of institutional adoption this year and the potential for a wider rise in Bitcoin.
Key Young Joo, CEO of CryptoQuant, responded to the news: “I can feel the crypto block prevalence here.”
What merchants think will come next
According to a pseudonym trader known as “Rect Capital”, if Bitcoin crosses the $ 59,000 mark, it is likely to be a new all-time high.
“BTC is recovering this week after waking up from the past two weeks that showed a slowdown in sales. BTC $ will try to break through its black and red slanted horizontal resistance area (around $ 59,000). It broke through this area and #Bitcoin will reach a new peak.”
Meanwhile, a CryptoCapo employee said this momentum could take Bitcoin to new and possibly even higher heights, possibly as high as $ 80,000. He said:
“Panic is meaningless. Some people just want to see the world burn … This sent over $ 80,000.”