- Bitcoin has hovered at $69,000 after plunging below $70,000.
- In contrast, the premium for bitcoin has increased noticeably in South Korea.
Bitcoin Premium in South Korea Rises After Recent Low
After almost reaching 10% in mid-April, bitcoin’s (BTC) famed premium in South Korea just fell below 1%. According to recent research, the premium in the nation is increasing.
Cryptoquant.com metrics show that on June 6, the premium has increased to 3.42% from a low of 0.62% on June 4, when global prices were nearly equal.
On June 9, according to historical data from coinmarketcap.com, one bitcoin was traded internationally for $69,288 per unit, while on Upbit, the price was 2.658% higher at $71,130. Comparable premiums are noted on Korbit, Coinone, and Bithumb. Additionally, Ethereum (ETH) exhibits a premium of 2.69%, trading at $3,679 worldwide and $3,778 on Upbit and other exchanges.
Due to supply and demand imbalances brought forth by South Korea’s limited trading environment, strong retail demand, lack of institutional players, and regulatory obstacles, BTC is trading at a premium relative to international rates.
The unique market dynamics and regulatory environment of South Korea’s cryptocurrency business are reflected in this premium.
In terms of BTC trading volume, the South Korean won eclipsed the US dollar in Q1 2024. Metrics during the weekend reveal that the US dollar accounted for 7.85% of all bitcoin deals, while the won accounted for 2.07% of the amount traded in BTC. Most BTC trades are in stablecoins denominated in US dollars.
The premium that has been noticed in South Korea for bitcoin, as it has stabilized slightly below its recent peak, provides an insightful look into the specific market dynamics and investor behavior in various geographic locations.
Traders can still benefit greatly from this trend because a high premium is typically interpreted as a positive indication. It usually means that there is significant buying pressure coming from South Korea, which may raise the price of Bitcoin temporarily.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
