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Bitcoin Hits $71,000 in South Korea as “Kimchi Premium” Goes Through the Roof

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Wed, 04/07/2021 - 05:07
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Alex Dovbnya
The unprecedented South Korean FOMO has pushed Bitcoin above $70,000 on local exchanges
Bitcoin Hits $71,000 in South Korea as “Kimchi Premium” Goes Through the Roof
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Bitcoin, the largest cryptocurrency, reached a new all-time high of 79,422,000 won ($71,000) at 5:55 a.m. UTC on the Upbit exchange in South Korea.

Upbit
Image by upbit.com

The so-called “kimchi premium,” an indicator named after a traditional South Korean side dish that shows the spread between local and global crypto prices, is currently sitting at over 23 percent.

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It presents an incredible arbitrage opportunity for those traders who manage to get around South Korea’s strict capital flow restrictions that make it extremely challenging to transfer money in and out of the country.  

Local cryptocurrency exchanges do not allow foreigners to register due to regulatory curbs.

Even though the soaring kimchi premium could be a harbinger of a market top, it is still nowhere near its historic peaks. Back in January 2018, it soared to 47 percent.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.