The Bitcoin Kimchi Premium Returns to Korea
The kimchi premium, which is basically the fact that Bitcoin trades at a higher price in Korean crypto exchanges than in trading platforms from other parts of the world, has returned.
In particular, the benchmark cryptocurrency is trading a 12.5% higher than in markets from other countries, coinciding with a rebound in the price of gold.
Going back to Bitcoin and the kimchi premium, the leading crypto was trading in the Asian country at $5,000 higher than in other markets – the asset was trading at $39,932 on US-based trading platform Coinbase, whereas its price sat at $45,115 on Bithumb, a well-known cryptocurrency trading platform from South Korea.
Reuters has reported that the Bank of America has concluded that this difference in the price of BTC between Korea and other countries is due to capital flow controls to stop the cross-border transfer of “hot money.”
It is worth noting that the kimchi premium has not disappeared despite Bitcoin’s recent 32% fall.
As far as gold gold is concerned, which is considered as a safe haven, is receiving increasing demand, which has resulted in its price rising in 4 days in a row and reaching levels that weren’t seen since January.