South Korea’s bitcoin kimchi premium hit a 10-month high at 9.7% as local prices remained steady despite a global crypto sell-off.
South Korea’s bitcoin kimchi premium has surged to a 10-month high as Bitcoin prices on local exchanges stay steady despite a broader crypto sell-off. CryptoQuant data shows that the premium hit 9.7% early Monday, the biggest since April 2024, before dropping a bit to 8.24%.
Kimchi Premium Rises Amid Market Uncertainty and Trade Tensions
The kimchi premium is the difference in Bitcoin prices between South Korean spots and prices in other parts of the world. This difference happens because of strict rules on money, which keep foreign buyers out of the market and limit big trades by local traders.
Presto Research Analyst Min Jung observed that the premium usually increases during strong market conditions when Korean buyers drive prices up. However, it can also jump during times of panic selling if local selling is less intense than in global markets.
The increase is happening due to economic uncertainty after U.S. President Donald Trump announced high taxes on goods from Canada, Mexico, and China. This decision has raised worries about a long trade war and possible increases in prices in the U.S.
The global crypto market has also experienced extreme volatility, with over $2.1 billion in liquidations in the past 24 hours, according to Coinglass. Jung says that if U.S. investors keep selling, the kimchi price might stay high. In the past, it has averaged about 5%, and a recovery in the market could bring it back to that level.
Even with strict rules, South Korea is one of the busiest crypto markets in the world, especially for dealing altcoins. Upbit, the top exchange in the country, was the fourth-largest centralized exchange in January by monthly trading activity, handling over $187 billion in transactions, as reported by The Block.