Is it the collapse of kimchi premium, the reset of bitcoin?
According to Cointelegraph, a media specializing in cryptocurrency on the 7th (local time), the so-called kimchi premium, which measures the premium of the bitcoin (BTC) price in the domestic cryptocurrency exchange market, plummeted.
The premium fell from 22% to 15% in a few hours on April 7, and continues to decline across major domestic exchanges.
Big recession in the Korean bitcoin market
As Cryptoquant CEO Young-joo Ki pointed out, the price of bitcoin has fallen sharply, especially on Korean exchanges.
As the bitcoin price fell, the kimchi premium also fell. However, as BTC’s price dropped even more on Korean exchanges, the premium plummeted in a matter of hours.
The place where the kimchi premium fell like that ‘two’ There is a reason.
First, Traders outside of Korea will have found a way to successfully arbitrage this premium. One potential way this could happen is for traders in other Asian markets to work with Korean whales to sell BTC and withdraw the same day.
second, Altcoins, which have been gaining momentum throughout the week, have been severely adjusted. As the altcoin market’s capital drained, traders also sold BTC and ETH, which could lead to a massive cryptocurrency decline.
Regarding this situation, CEO Ki said, “Someone seems to have finally figured out how to readjust kimchi premium opportunities.” He pointed out that the 30-minute transaction volume of Upbit, the largest exchange in Korea, was higher than that of Binance.”
“Therefore, this decline seems to be related to the decline in the kimchi premium. One evidence of arbitrage is that the average of $BTC inflows on Bithumb, one of the largest exchanges in Korea, is increasing while all exchanges are decreasing. “It seems that some whales are depositing BTC on Korean exchanges.”
Meanwhile, XRP has consistently been one of the most popular cryptocurrencies in the Korean market over the past week. As a result, XRP rose by more than $1 for the first time in three years.
However, as altcoins such as XRP have recently begun to decline, the overall market sentiment surrounding Bitcoin and Ethereum has deteriorated in the Asian market, and the premium may have decreased.