Does the Kimchi Premium Confirm the Bullish Sentiment?With the sudden price increase, volatility has also made an appearance — creating arbitrage opportunities across Bitcoin markets. At the same time, traders have spotted the formation of a price discrepancy between the BTC/USD and BTC/KRW pairings, also known as ‘the Kimchi Premium.’ paying a premium on OTC trades for the Tether (USDT) stablecoin. South Korea’s Kimchi Premium, which is a markup on Bitcoin price asks directly, is now following suit — leading some to confirm the bullish case for the first and foremost cryptocurrency.
If History is Any Indication…The price discrepancy has appeared in the past for Bitcoin, especially during the last bull run. Data shows that the Kimchi premium has, at times, reached the 40 percent mark. Right now, according to data from South Korean exchanges Korbit and UpBit, the premium is around 1.5 percent. Whether it continues to increase in the near future remains to be seen. However, the re-appearance of the Kimchi phenomenon is already hinting at the growing demand for cryptocurrencies in the country. What do think of the re-appearance of the Kimchi Premium? Is this a leading indicator for upwards price swings? Share your opinion in the comments!
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