Bitcoin Premium in South Korea Increases, Reflecting Strong Local Demand
After falling below $70,000, bitcoin has stabilized above the $69,000 mark. In contrast, South Korea has seen a notable rise in the premium for bitcoin.
South Koreaâs Bitcoin Premium Rebounds After Hitting Recent Low
Recently, bitcoin (BTC) saw its infamous premium in South Korea drop below 1% after nearly hitting 10% in mid-April. Current data indicates that the premium in the country is rebounding. Metrics from cryptoquant.com reveal that after hitting a low of 0.62% on June 4, when global prices were almost identical, the premium climbed to 3.42% by June 6.
Archived data from coinmarketcap.com on June 9, shows BTC traded globally at $69,288 per unit, while on Upbit it was priced 2.658% higher at $71,130 per BTC. Similar premiums are observed on Bithumb, Coinone, and Korbit. Ethereum (ETH) also shows a premium of 2.69%, with prices at $3,679 globally and $3,778 on Upbit and other platforms.
The closed trading environment, high retail demand, absence of institutional players, and regulatory hurdles in South Korea create supply-demand imbalances, causing BTC to trade at a premium compared to global rates. This premium reflects the distinct market dynamics and regulatory landscape of South Koreaâs crypto industry.
In Q1 2024, the South Korean won surpassed the U.S. dollar in BTC trading volume. Over the weekend, metrics show the won accounts for 2.07% of BTC trade volume, while the U.S. dollar holds 7.85% of all bitcoin trades. U.S. dollar-based stablecoins account for a majority of BTC trades.
As bitcoin stabilizes slightly below its recent high, the observed premium in South Korea offers a telling glimpse into the localized market dynamics and investor behavior in distinct regions. This trend continues to offer vital insights for traders, as a high premium is generally seen as a bullish signal. Typically it indicates strong South Korean buying pressure, which could potentially push BTCâs price higher in the short term.
What do you think about the premium in South Korea rebounding? Share your thoughts and opinions about this subject in the comments section below. #Write2Earn
