Bitcoin (BTC) price is seeing a major rally in South Korea as showcased by the coin’s price premium hitting 10% in the country.
Bitcoin has continued to command investor interest in South Korea. As detailed by CryptoQuant’s Founder and CEO Ki Young Ju, Bitcoin’s price premium in South Korea is now at a 2-year high, having surged to 10%.
The Price Premium, known as the Kimchi Premium or the Korea Premium Index, marks the difference between the value of Bitcoin on global exchanges and on exchanges in South Korea.
Strong Retail Presence
South Korea is historically known to command high liquidity owing to retail cash injection. Per the Kimchi Premium data on CryptoQuant, the last value is pegged at 5.61% as of the last value, down from the 10% recorded earlier as showcased by Ki Young Ju.
#Bitcoin's price premium in Korea reaches 10%, a two-year high. Korean retail investors are getting back.https://t.co/2hsQyawe2i pic.twitter.com/iKXm25Un3T
— Ki Young Ju (@ki_young_ju) March 7, 2024
The Kimchi Premium has been on a steady rise since January 24 when the reading was pegged at 2.58 with the price of Bitcoin hovering at $40,080.
From here, the value increased to 2.76 as the price jumped to $43,077 on February 1. This figure even soared further to 4.88 as the coin’s price jumped to $62,413.
As of March 5, the price of Bitcoin jumped briefly to 96,734,000 South Korean Won valued at $72,504, a surge that eventually left the price at a 6.84 premium. With institutional investment in South Korea relatively lowerl, the boost in Bitcoin’s liquidity is reportedly fueled by sustained retail domination.
Bitcoin is Just Getting Started
Despite the US leading the spot Bitcoin ETF liquidity flow, the influence of American cash injection is driving the need for new strategies by investors in other countries.
With the fast-growing level of adoption and the likelihood of state-backed bodies like Arizona State’s two retirement bodies exploring Bitcoin exposure, the surge of the asset to its All-Time High (ATH) might just be a warm-up to the mega rally that many market experts have projected.
LKi Young Ju highlighted earlier that should there be a need for any correction, it is unlikely that BTC will fall below $46,376, its price when the spot Bitcoin ETF products went live in January.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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