Bitcoin reached the astronomical figure of $ 66,000 in South Korea on. The price of the main crypto currency on the Korean peninsula is due to the return of the “Kimchi premium”, the Kimchi premium, a differential index between the price of bitcoin on Korean and “Western” exchanges.
The Kimchi Premium is the gap in cryptocurrency prices on South Korean exchanges compared to other exchanges globally. Kimchi premium is seen predominantly in the price of Bitcoin (BTC) and first appeared in 2016. Between that year and 2018, the Kimchi Premium averaged almost 4.80% and reached almost 55% in January 2018
In other words, this index makes the price of Bitcoin able to trade at a higher price on a South Korean exchange than one located in the United States or Europe and suggests a growing demand for BTC in South Korea.
As of press time, the price of bitcoin on Bithumb (Korean exchange) is trading around $ 66,200 on Bithumb, according to Trading View. That’s 15% or $ 8,000 higher than Coinbase’s $ 57,000.
The price difference may be due to the lack of high-yield investment options for investors in South Korea and does not represent an opportunity for speculation as Korean exchanges do not accept foreign clients due to local regulations.
Also, Korean citizens are also unable to buy crypto currencies at lower prices on global exchanges because they are not compatible with the Korean won. Binance and OKEx both had branches in Korea, but both were recently closed.