Bitcoin’s ‘Kimchi Premium’ Returns to 1%, Longest Positive Stretch Since May

Forecast Trend Report by Period

The so-called kimchi premium, in which Bitcoin trades at a higher price in South Korea than overseas, has reappeared. The move is being read as a sign that buying appetite among Korean retail investors is partly recovering alongside Bitcoin’s recent rebound.

Bloomberg reported that Bitcoin on Upbit was trading on Sept. 1 at about a 1% premium to Binance’s dollar-denominated price. Domestic Bitcoin prices have remained above overseas levels for the past week, the longest positive stretch since early May.

Rachael Lucas, an analyst at BTC Markets, said Korean retail investors tend to buy aggressively during risk-on periods. She added that there have been cases in the past where Bitcoin returns strengthened after the kimchi premium turned from negative to positive.