Kimchi Premium Goes off-charts: Hits Three-Year High as The Asian Market Soars

The Kimchi premium index sees a three-year high. The strength of the U.S. dollar and global trade wars necessitated the rise of an Asian counterpart of Bitcoin.  

In the last 3 years, Kimchi premium was never at a high of 11.9%. that justifies the price gap of Bitcoin in South Korea and worldwide.  

What drives Kimchi’s Growth? 

There is a grave demand for this domestic asset in Asia. In alignment, crypto prices are falling globally. Even when the price of BTC dropped to a staggering $93,900, the South Korean traders were registering a significant markup.  

The US dollar index may be at play  

When kimchi was rising, the US dollar index created a downward thrust on global prices of BTC. The pressure was triggered by Donald Trump’s aggressive tariff sell-off.  

What’s the real reason behind the surge in kimchi?  

Traders and analysts around the world are keeping no stone unturned to explore why Kimchi Premium is on the rise. Meanwhile, Cryptoquant CEO from South Korea, Young Ju has an interesting observation.  

According to him the Korean traders willing to buy shallow-priced Bitcoin is not the reason behind a soaring Kimchi Premium. Instead, BTC is getting converted into USD rather than Won. It means most domestic traders are playing globally.  

Naturally, there would be capital outflow, instead of a spike in demand. 

Research says that the result of pressure selling among investors in the US could result in the flaring growth of Asian crypto platforms. The empirical average of Kimchi Premium is already 5%. A rebounding market could make it lower the level.  

The way forward  

South Korea has always focused on altcoin reading heavily. That’s why the country most of one of the most active and flourishing crypto markets worldwide.  

South Korean traders would be more meaningful in the future, especially after Korean Upbit became the fourth largest centralized exchange in the world.