- Kimchi Premium prized BTC $5000 higher than global markets.
- While BTC is valued at $39k globally, South Korean markets value BTC at $45k.
- While demand is high in South Korea, gold demand is also rising.
Back in April, the infamous Kimchi Premium drove BTC price to $68k. During those times, the regular market price for BTC was only around $59,000. Kimchi Premium is the term used to describe the market price difference between Korean markets and other markets across the globe.
In more recent news, Bitcoin was trading $5000 higher in South Korean markets compared to global crypto markets. While BTC was trading at around $39k in regular markets. The South Korean exchange Bithumb prized BTC at $45k.
In a statement issued by the Bank of America, they described the Kimchi Premium as a consequence of “capital flow control” that aims to stop the cross-border transfer of what they described as “hot money.”
In a report published Tuesday, the Bank of America mentioned that the onshore price for cryptocurrencies in Korea is persistently above international prices suggesting this to be…
a result of effective capital control that prevents effective arbitrage of onshore and offshore prices.
Aside from the rising demand for cryptocurrencies in South Korea, according to reports, gold demand also increased. According to reports, gold prices rose four days in a row leading up to Tuesday, May 18, hitting heights not witnessed since January.