Kimchi Premium is the difference between Bitcoin’s price on South Korean crypto exchanges and Western exchanges.
Bitcoin is currently traded on Bithumb for around $ 66,200, according to TradingView. This is about 15% or $ 9,000 higher than Bitcoin’s $ 57,000 price on Coinbase.
Ethereum (ETH) is trading at around $ 2,350 on Bithumb compared to $ 2,020 on Coinbase, according to TradingView.
The kimchi premium shows that the demand for bitcoin and ethereum in South Korea is increasing as the cryptocurrency market continues to rise around the world.
The kimchi premium first appeared in 2016, according to the University of Calgary. According to the report, the Kimchi premium averaged 4.80% between 2016 and 2018, and rose almost 55% in January 2018.