Bitcoin has managed to stabilize above the $69,000 mark after a recent dip below $70,000. Meanwhile, South Korea has witnessed a significant increase in the premium for bitcoin, signaling a rebound in the market.
The premium for bitcoin in South Korea recently dropped below 1%, down from nearly 10% in mid-April. However, current data suggests that the premium is on the rise again. According to metrics from cryptoquant.com, the premium hit a low of 0.62% on June 4 when global prices were relatively similar. By June 6, the premium had climbed to 3.42%.
Archived data from coinmarketcap.com on June 9 shows that globally, bitcoin was trading at $69,288 per unit, while on Upbit, it was priced 2.658% higher at $71,130 per BTC. Similar premiums were observed on other platforms like Bithumb, Coinone, and Korbit. Ethereum also showed a premium of 2.69%, with prices at $3,679 globally and $3,778 on Upbit and other exchanges.
The unique market dynamics in South Korea, including a closed trading environment, high retail demand, the absence of institutional players, and regulatory challenges, contribute to supply-demand imbalances that lead to bitcoin trading at a premium compared to global rates. This premium reflects the specific regulatory landscape and market conditions in the South Korean crypto industry.
In the first quarter of 2024, the South Korean won surpassed the U.S. dollar in bitcoin trading volume. Recent metrics indicate that the won accounts for 2.07% of bitcoin trade volume over the weekend, while the U.S. dollar holds 7.85% of all bitcoin trades. The majority of bitcoin trades are conducted using U.S. dollar-based stablecoins.
As bitcoin stabilizes below its recent high, the premium in South Korea provides valuable insights into localized market dynamics and investor behavior in different regions. This trend can offer important information for traders, as a high premium is often seen as a bullish signal, indicating strong buying pressure in South Korea that could potentially drive bitcoin's price higher in the short term.
What are your thoughts on the rebounding premium in South Korea? Feel free to share your opinions and comments on this topic below.