Bitcoin Trades Lower In South Korea
This year, the reverse Kimchi Premium phenomenon, where domestic virtual asset prices trade lower than those overseas, has occurred for 123 days, marking the first time the inversion period has surpassed half the year on an annual basis. According to the on-chain data platform CryptoQuant, the Bitco
In South Korea, the Bitcoin market has shown a decline, trading at lower prices compared to international markets for the first half of the year. On-chain data indicates that the Bitcoin Kimchi Premium index, which measures the price difference between domestic and overseas exchanges, averaged -0.48% from August 1 to 9. This trend has persisted for 123 days, setting a new record.
The phenomenon has lasted for 35 consecutive days from June 20 to July 24, and 30 days in May, surpassing the previous longest streak of 23 days in 2020. The shift of domestic investors from the virtual asset market to the stock market is believed to be a major contributor to the price decline. Trading volume on the top five domestic exchanges fell by 49.5% year-over-year in the second quarter, while the KOSPI surged 96.4% from the previous year.
Ethereum also failed to turn positive in August, with an average index of -0.49. The Kimchi Premium, which peaked at 10.88 in March 2021, fell to -3.70 this June. A lack of regulatory measures, such as the Framework Act on Digital Assets, has weakened market competitiveness. The absence of derivatives trading and the impending virtual asset taxation are further contributing to the declining investment attractiveness.
Industry experts attribute the decline to a combination of restricted inflows, taxation, and the inability of domestic exchanges to introduce new products.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
