Why the Bitcoin price is higher in Korea?
The price of the major cryptocurrency reached $69 thousand on South Korean crypto exchanges. The experts explained what pushes the price of the digital coin up in the Asian region and how it influences the global market.
The Bitcoin price on South Korean crypto exchanges Bithumb and Korbit reached 77,9 thousand wons, which amounts to $69 thousand at the exchange rate as of April 6, 15:00 Moscow time. At the same time, the average market price of the major cryptocurrency, according to CoinGecko, is at the level of $58,5 thousand.
In the field of digital money, this difference between the quoted prices in South Korea and the rest of the world is called “Kimchi Premium”. This term appeared in 2017 when Bitcoin was trading at $20 thousand, and its price raised to $24 thousand on South Korean exchanges (higher by 20%). According to the current data, “Kimchi Premium” is almost 18%.
Bitcoin extra charge in South Korea can be explained by the fact that this is an extremely developed country with an innovative economy, Yanis Kivkulis explained, the leading strategist of investment company EXANTE. He noticed that a similar situation with major cryptocurrency charge can be occasionally observed in Africa, however, there it’s caused by the instability of local currency and deep problems in the economy. In this case, the expert says, the people of South Korea don’t want to miss an opportunity to enter the market on the wave of rally amidst excitement with novel technologies.
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