South Koreans have also started to join in on the crypto rally.
Another sign of Bitcoin euphoria can be seen in the “kimchi premium” that has returned.
The positive price gap between South Korean cryptocurrency exchanges and other exchanges is the Kimchi premium which has hit two-year highs amidst the ongoing price rally.
This premium first made its presence known in December around the time Bitcoin breached its 2017 peak of $20,000. At one point this premium was above 6% in January this year.
As of writing, Bitcoin price BTC 4.05% Bitcoin / USD BTCUSD $ 35,315.36
$1,430.27 4.05% Volume 68.8 b Change $1,430.27 Open $35,315.36 Circulating 18.59 m Market Cap 656.61 b
2 h Bitcoin Supply Liquidity Falling Faster than Ever Amidst ‘Tremendous Demand’ 2 h IGT Gets Regulatory Approval to Use Bitcoin & Crypto’s at Slot Machines 2 h What’s Happening on the Bitcoin Network Amidst The Red Hot Market? is trading at $34,670 on Bitfinex, $34,685 on Coinbase, $35,621 on Upbit, $35,595 on Bithumb, and $34,834 on Binance, as per Coinmarketcap.
The last time such a difference in prices was seen was in early 2018.
“‘Player 2 has entered the game,” said Ari Paul CIO at Blocktower Capital. “The long-running trend of Asia hours being bearish may be broken as South Korea seems to have finally caught a major bid yesterday and continuing into tonight,” he added.
2017 bull run — consistent Kimchi premium (massively inflated at local tops)
Entire 2020 rally — Korea lagged.
— Mohit Sorout 📈 (@singhsoro) January 6, 2021
Korean exchanges are also seeing massive deposits. On Tuesday, 3,001 BTC worth more than $99 million was moved to Bithumb, as per data source CryptoQuant. Just this week, Bithumb Global also opened the BTC market for their KRW only market.
These premiums appear for a number of reasons which include the availability of crypto service providers, regulatory environment, fiat currency conversion ease, and economic situation.
As Bitcoin price rallies, people are getting back into crypto which can also be seen in Bitcoin trending on South Korea’s biggest search engine Naver, which happened the day the digital asset ripped past $30k. The volume on these exchanges has also started to trend up moving into 2021.
Just this week, Naver published an article about Bitcoin, gold, and real estate skyrocketing, noting how BTC surpassed 30 million won at the end of last year.