According to data from CryptoQuant, Bitcoin’s kimchi premium in South Korea has reached its highest level in 27 months at 10.32% on Wednesday in Asia.
Premium kimchi refers to the difference in the price of cryptocurrencies in South Korea compared to other markets.
CryptoQuant's data specifically compares the price of Bitcoin in South Korea with that of the US market.
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The South Korean crypto market has unique factors that contribute to the price difference. For example, foreign investors cannot trade on South Korean exchanges, which limits the supply of cryptocurrencies in the country.
This, combined with strong demand from local investors, may result in a higher premium for cryptos in the South Korean market.
The recent rise in the kimchi premium suggests a significant increase in buying pressure from retail investors in South Korea.