Bitcoin Trading at Over $66k in South Korea, the 'Kimchi Premium' is Back!
Due to extremely high retail demand for Bitcoin in South Korea--a country historically known for being early adopters, knitting laws supportive of blockchain and digital assets, have reportedly seen the price of the digital gold roar to $66k. The divergence from standard prices of around $59.5k means Bitcoin is trading at a considerable premium in the country. This is the "Kimchi" premium, an opportunity for arbitrage exploitation.
Judging from recent developments--especially the doubling down by institutions and odds of the U.S. SEC approving any of the over five ETF applications in 2021, the retail demand for Bitcoin would thrust prices to new 2021 highs. The apparent scarcity of BTC in South Korea forces sellers to dispose of their coins at a significant profit as market forces try to balance out and bring prices close to equilibrium. However, as long as the demand for Bitcoin is high, the premium will exist, raking huge profits for arbitrageurs.
Impact on the BTC Price:
Bullish. Demand for Bitcoin is high due to on-chain and macro-economic conditions that breed uncertainty. In this mix, investors flow to the Bitcoin network's stability and trust, lifting prices even higher.
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