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Bitcoin’s price premiums have reemerged amid the current bullish enthusiasm permeating the market.
Kimchi premium
Data indicates that BTC is trading at a $4,000 premium in South Korea compared to other markets. At the time of reporting, Bitcoin was valued at $66,893 on Binance, while South Korean exchanges such as Upbit, Coinone, and Bithumb displayed prices around $70,000.
Bitcoin Price on South Korean Exchanges. (Source: Coinpan)
This premium trend is also evident in Ethereum, the second-largest cryptocurrency by market capitalization. ETH is priced at approximately $3,900 on Korean exchanges, while it remains around $3,600 on other platforms.
Ethereum Price on Korean Exchanges. (Source: Coinpan)
The Kimchi premium refers to a situation where the price of a digital asset is significantly elevated on South Korean exchanges compared to US or European markets, creating arbitrage opportunities for traders with access to both regions.
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Often regarded as a bullish sign, the Kimchi premium indicates heightened buyer activity within the Korean market. This premium is also utilized to infer strong engagement with digital assets in South Korea.
CryptoQuant’s CEO Ki Young Ju recently emphasized strong institutional interest in BTC in Korea, noting widespread adoption even among older age groups on platforms like Upbit.
While the current resurgence of the premium is not without precedent, it mirrors past instances, particularly during bullish phases such as in 2021 when BTC traded at significantly higher prices on South Korean exchanges compared to Coinbase and other leading platforms.
CME Premium
In a similar vein, several market analysts have noted that BTC is trading at a premium exceeding $69,000 on the Chicago Mercantile Exchange (CME) futures, marking a new all-time high.
They explained that this reflects traders’ willingness to pay a premium for the CME, as they anticipate that the price of BTC will continue to rise.
Data from on-chain analytical platform CoinGlass reveals that CME’s BTC open interest reached a record high of nearly $10 billion in the past day, while the total open interest for the flagship asset has hit a record high of $32.36 billion.
The post Bitcoin sees return of Kimchi Premium in South Korea and CME futures market appeared first on CryptoSlate.
