The price of Bitcoin (BTC) is continuing to range between $56,000 and $60,000, as the so-called “Kimchi premium” is surging to yearly highs.
Kimchi premium forms when Bitcoin is trading at a higher price in South Korea over other major markets like the United States.
In 2017, the Kimchi premium surpassed 20%, causing Bitcoin to trade at around $24,000 in South Korea while it topped at nearly $20,000 in the U.S.
Korea Premium Index. Source: CryptoQuant.com
Last week, on March 29, this premium resurfaced, hovering at 6%, which has since climbed to around 11%.
Kimchi premium is at 11%, is this bad for Bitcoin?
The last time the Kimchi premium rose to an all-time high, the Bitcoin market topped and saw a violent correction almost immediately afterward.
Although the premium suggests that the South Korean cryptocurrency market is showing signs of getting overheated, it is not high enough to mark a top.
Ki Young Ju, the CEO of CryptoQuant, said that the premium is worrisome, but the fundamentals of Bitcoin look strongTitle: Kimchi premium hits 11% — Is Bitcoin now in a 2017-esque retail stage of the cycle?
Sourced From: cointelegraph.com/news/kimchi-premium-hits-11-is-bitcoin-now-in-a-2017-esque-retail-stage-of-the-cycle
Published Date: Sun, 04 Apr 2021 14:00:00 +0100