The price of Bitcoin kimchi in South Korea has fallen significantly amid a broader market decline, indicating weak enthusiasm among digital asset investors in the country.
according to Data From CryptoQuant The price of Bitcoin Kimchi fell 1.5% on Friday during the afternoon trading session in Asia.
Bitcoin Kimchi Premium declines
For starters, the kimchi premium is an indicator of the difference between Bitcoin's valuation on South Korean exchanges and global cryptocurrency trading platforms. The term also refers to a South Korean dish.
The price of Bitcoin (BTC) on South Korean exchanges differs from that of global platforms due to capital control policies that prohibit foreign investors from trading on local platforms. Likewise, these policies prevented domestic investors from engaging in arbitrage. These bans have limited the supply of cryptocurrencies in South Korea, causing wide gaps in prices due to high demand.
The kimchi premium has become one of the main indicators for monitoring changes in the cryptocurrency space and investor sentiment. A higher premium indicates bullish investor sentiment compared to the international market, while a lower number indicates bearish sentiment and reduced buying pressure.
With the premium currently at 1.54%, South Korean investors' interest in Bitcoin has declined. This lack of enthusiasm is also evident on major local exchanges, which have seen a decline in trading volumes, according to him Data From Coin Market Cap.
Positive sign?
The last time Bitcoin Kimchi's premium hovered around its current level was in mid-February when BTC was valued at around $48,200. By the first week of March, the index had risen to a 27-month high of 10.32%. It rose in the following weeks, reaching 11.44% when Bitcoin hit a new all-time high.
However, the premium has steadily declined since BTC fell from its all-time high and settled below $70,000. Since April, there has been a bloodbath in the cryptocurrency market, and the index has not been spared. Bitcoin fell below $60,000, reaching $56,700 before rebounding. At the time of writing, the asset was trading at $63,000, higher 3.2% in the last 24 hours
However, the current kimchi premium level could be a positive sign for the cryptocurrency market, as it indicates that there is enough room to rise, and we could see a significant Bitcoin recovery soon.
The post Bitcoin Kimchi Premium Drops in South Korea: What Does It Mean for BTC? appeared first on CryptoPotato.
