Bitcoin may be back over $10,000, but the price increase is bringing with it similar market inconsistencies as seen in the cryptocurrency's meteoric 2017 ascent.
At press time, bitcoin prices in South Korea are once again trading at a notable premium to Western exchanges.
The spread, popularly known as the "Kimchi Premium" after a Korean preserved food dish, rose to $1,048 on Sunday, the highest level since Feb. 24, 2018, according to data from cryptocurrency exchanges Bithumb and Coinbase.
As of writing, the price differential on two exchanges is seen at $520. Kimchi premium daily chart.
Interestingly, the kimchi premium has spiked with bitcoin's break above $10,000.
As a result, the kimchi premium was all but evaporated by the end of February 2018.
Other markets also witnessed a rise in the Kimchi premium last week.
The spread between the price of ethereum's ether token on South Korea exchanges and Western exchanges rose to $28.57 on Sunday, the highest level since May 2018.
As of writing, the spread is seen at $144. The kimchi premium in both bitcoin and the ethereum markets is falling back along with the correction in prices.
While bitcoin is now trading at $10,500 representing a 24 percent drop from the recent high of $13,880, ether is changing hands at $286 - also down more than 20 percent from last week's high of $365. Disclosure: The author holds no cryptocurrency at the time of writing.
Bitcoin's 'Kimchi Premium' Returns With $1K Price Spreads on Crypto Exchanges
Publié le Jul 1, 2019
by Coindesk | Publié le Coinage
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