[Bitcoin Now] Korea Is Now Cheaper... "Kimchi Premium" Turns Into "Kimchi Discount"

Reverse Kimchi Premium Persists for Extended Period…
35 Consecutive Days Recorded

Investors Flee to Overseas Exchanges Amid Booming Stock Market

This year, the phenomenon known as the "reverse kimchi premium," where virtual assets are traded more cheaply in Korea than overseas, has continued in the domestic market. Analysts attribute the persistence of this trend to a decline in investment incentives caused by the delay in enacting the Digital Asset Basic Act and the prospect of virtual asset taxation, as well as investors leaving the domestic market for the stock market and overseas virtual asset exchanges.

According to CryptoQuant, an on-chain data platform, as of August 9, the kimchi premium index for Bitcoin has been negative throughout the month. The average value was -0.48. The kimchi premium index represents the percentage price difference between Korea’s five major won-based exchanges (such as Upbit and Bithumb) and overseas exchanges. An average of -0.48 means that Bitcoin was 0.48% cheaper on domestic exchanges compared to their overseas counterparts.

Out of 221 days this year, Bitcoin traded at a reverse kimchi premium for 123 days—exceeding the number of days with a positive kimchi premium. On an annual basis, this is the first year since CryptoQuant began providing related figures in July 2020 that the reverse kimchi premium period has lasted longer than the standard kimchi premium period.