The price of Bitcoin on South Korean trading platforms has fallen below its value on global exchanges, a situation opposite to the previous "kimchi premium" where the cryptocurrency was priced 15% higher than elsewhere.
According to Doo Wan Nam COO Du Van Nam, all things being equal, this indicates a declining interest in digital assets.
Between February 17 and February 19, the kimchi premium fluctuated between -0.24 and 0.01.
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Between 2016 to 2018, the "kimchi premium" hovered around 4.8%. At its peak, the figure reached almost 55%. Similar calculations were made by researchers at the University of Calgary.
In 2019, Bitcoin was trading 3-5% higher in Asian countries than in other markets.
The arbitrage opportunity disappeared when the country's authorities cracked down on illegal currency transactions using digital assets.