‘Kimchi Premium’ Alert in Bitcoin: Indicator Hits 2021 Bullish Peak – Experienced Analysts Evaluated
Cryptocurrency analysis firm CryptoQuant recently shared an interesting analysis showing that the Korean Premium in Bitcoin price is overpriced. According to analysts, this could potentially signal a price peak.
Korean Premium indicates that Bitcoin has higher values in South Korea compared to other global exchanges. This phenomenon, often used to identify price tops, may indicate strong buying pressure from Korean retail investors. Koreans are known for their immediate access to cash to purchase coins on exchanges and their high susceptibility to the FOMO (Fear of Missing Out) scam.
Interestingly, the current Korea Premium Index (14-Day Moving Average) mirrors the Korea Premium Index during Bitcoin’s price peak in Q4 2021, according to CryptoQuant analysts. This has aroused curiosity among analysts and investors who want to see whether the Korean Premium Index will provide important clues for price peaks this time too.
Korean Premium is also known as “Kimchi Premium”, named after the famous Korean dish. It represents the difference in cryptocurrency prices on South Korean exchanges compared to other exchanges around the world. Kimchi Premium is mainly seen in the Bitcoin (BTC) price. In other words, the price of Bitcoin may be listed at a higher price on the South Korean exchange than on an exchange in the United States or Europe, creating an arbitrage opportunity.
Kimchi Premium on the cryptocurrency market first appeared in 2016, according to a report by the University of Calgary.
*This is not investment advice.
