Bitcoin price is currently trading at a substantial premium on South Korean crypto exchanges – more than $6,000 per <span class="wpg-tooltip-term-title">Coin</span></h3><div class="wpg-tooltip-content">A coin is a unit of digital value. When describing cryptocurrencies, they are built using the bitcoin technology and have no other value unlike tokens which have the potential of software being built with them.<p class="wpg-read-more"><a href="https://www.newsbtc.com/dictionary/coin/">» Read more</a><p></div>”>coin in USD equivalent. However, in the past this so-called “Kimchi Premium” has signaled the end of the bull trend.
Is this a sign that things across the crypto market could soon turn bearish? Or is there something else afoot going on with the US dollar and the South Korean won that is causing the discrepancy?
Bitcoin FOMO Comes To A Boiling Point In South Korea, According To Price Premium
Bitcoin is an asset unlike anything else in the world before it. There’s no company involved like stocks; no country like fiat currencies; nor does it have a physical form like a commodity.
Because the decentralized cryptocurrency technology is controlled by no state actor, the underlying asset could some day become the first non-sovereign global reserve currency.
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The crypto market like these other assets, however, also trades globally, and is subject to deviations in price data depending on how aggressive one region’s currency is being exchange to buy up BTC.
Once again, crypto FOMO has taken hold in the country of South Korea, resulting in the return of something called the “Kimchi Premium.”
The Kimchi Premium has Bitcoin priced nearly $6,000 higher in South Korea | Source: BTCUSD on TradingView.com
The Return Of The Kimchi Premium Could Spell Danger For The Ongoing Crypto Bull Run
The chart above demonstrates the sizable deviation between BTCUSD and BTCKRW. The discrepancy is roughly $6,000 USD currency and climbing. The crypto community has dubbed this unusual phenomenon the “Kimchi Premium.”
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It isn’t clear what’s causing such FOMO amongst South Korean investors, but the so-called premium hasn’t been around since the last week of 2017.