The premiums of an infamous Bitcoin (BTC)
The so -called Kimchi Premium, or the difference in Bitcoin prices in Korean exchanges compared to global bourses, increased just over 10% from the Asian morning hours on Monday, since BTC fell 6% in the last 24 hours.
Arbitration implies buying bitcoin in a global exchange and selling it in a Korean exchange for a gain without risks in Korean cattle. Bag of real gains is difficult due to strict capital controls of South Korea, but the premium is often used along with other factors to measure the feeling of the market.
Volume trade in Korean exchanges Bithumb and Upbit have decreased significantly last week, indicating a drop in retail commercial activity. Meanwhile, the balances of the established marginalized layer in dollars have been in decline in both exchanges with cases of retirement delays.
“It seems that most retail investors are already complete telegram.
“In this situation, the Premium Kimchi does not represent the overvaluation of retail investors; Rather, it seems to have increased as a passive response to the uncertainty of a strong dollar environment, ”Park added.
“Kimchi’s cousin can increase excessively when the negotiation volume increases, but it can also help defend prices when assets prices in exchanges abroad decrease significantly,” Park said, and added that it is likely It was a positive signal “in the short term for Bitcoin. .
