Latest

Bitcoin Premium in South Korea Increases, Reflecting Strong Local Demand

Bitcoin’s premium in South Korea has been on the rise, reflecting strong local demand for the cryptocurrency. While bitcoin has stabilized above $69,000 globally, in South Korea, the premium has rebounded after hitting a recent low. Data from cryptoquant.com shows that the premium dropped to 0.62% on June 4, but by June 6, it had climbed to 3.42%. On platforms like Upbit, the premium was even higher, with bitcoin trading at $71,130 compared to the global price of $69,288. Similar premiums were also observed for Ethereum.

The premium in South Korea is attributed to several factors including the closed trading environment, high retail demand, absence of institutional players, and regulatory hurdles. These factors create supply-demand imbalances, leading to bitcoin trading at a premium compared to global rates. In fact, in Q1 2024, the South Korean won surpassed the U.S. dollar in BTC trading volume.

The rebounding premium in South Korea is seen as a bullish signal, indicating strong buying pressure from South Korean investors. This localized market dynamic offers important insights for traders and suggests that BTC’s price could potentially increase in the short term.