Kimchi Premium Spread on Bitcoin’s Price Disappears Once More As Trading Range Tightens
The Kimchi Premium has finally disappeared. The concept, in case you are not familiar with the term, is the “extra” that people pay for Bitcoin in South Korea. For reasons which are linked to demand, people in the country often pay more for Bitcoin than in the rest of the world.
Recently, however, the spread between the prices in the U. S. and South Korea has disappeared. Before now, people there had to pay a lot more for BTC, which peaked at being 54% more expensive in Korea some months ago.
The Kimchi Premium is set to appear and disappear over time, being a constant in the Korean market. Recently, however, possibly due to the price of the local fiat currency becoming lower, there is a kind of reverse Kimchi Premium trend and you can find BTC slightly cheaper on the country.
This could also have a relation with how the local market is becoming more regulated recently and adhering to more strict laws. With more supervision, market manipulation gets weaker and the prices tend to be more stable.
According to a recent piece of research made by the University of Calgary has affirmed that the Kimchi Premium is largely a structural issue and that it is caused by the time that markets have apart from each other. This causes several people to try to profit from the difference, but the truth is that it is very hard to do it.
It was also revealed that as Bitcoin gets more mainstream in the country and international trading gets faster, the Kimchi Premium will possibly be affected and go down as it happened recently.
Bitcoin’s price is $32,387.15 BTC/USD exchange rate today. The real-time BTC market cap of $606.93 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $35.13 Billion and live coin value change of BTC -6.56 in the last 24 hours.