Coin Edition -
- South Korea’s Bitcoin price premium hits 10%, signaling renewed retail investor interest.
- Retail dominance fuels Bitcoin liquidity surge in South Korea despite subdued institutional investment.
- Ki Young Ju’s analysis suggests Bitcoin’s price is unlikely to dip below $46,376, offering reassurance to investors.
Bitcoin is reaching new heights in South Korea, with its price premium achieving a 2-year record of 10% in the country, according to the co-founder and CEO of the crypto-analytics firm CryptoQuant, Ki Young Ju. The rise in trading volume reflects that there is a renewed interest among Korean individual investors, which might be a signal that the market dynamics are also changing.
#Bitcoin's price premium in Korea reaches 10%, a two-year high. Korean retail investors are getting back.https://t.co/2hsQyawe2i pic.twitter.com/iKXm25Un3T— Ki Young Ju (@ki_young_ju) March 7, 2024
The price premium, often referred to as the “Kimchi Premium” or the Korea Premium Index, denotes the variance between Bitcoin’s value on global exchanges and its value on exchanges within South Korea. This premium has historically been a barometer of the country’s robust retail investment activity, contributing to high liquidity levels.
Notably, Ki Young Ju highlighted this surge in Bitcoin’s price premium, indicating a growing interest in the cryptocurrency among South Korean investors. The premium, which stood at 5.61% in recent data, marks a significant increase from earlier levels, further emphasizing the resurgence of retail investment.
Since January, the Kimchi Premium has witnessed a steady ascent, coinciding with Bitcoin’s price trajectory. Starting at 2.58 on January 24, the premium surged to 4.88 by February 1 as Bitcoin’s price soared to $62,413. The latest data reveals a premium of 6.84% as of March 5, indicating sustained retail dominance in the South Korean market.
Source: CryptoQuant
While institutional investment in South Korea remains relatively subdued compared to other regions, the surge in Bitcoin’s liquidity is primarily fueled by retail investors. This trend suggests a growing confidence among retail participants in the cryptocurrency market despite global uncertainties.
Interestingly, while the United States leads in spot Bitcoin ETF liquidity flow, the influx of American capital is driving the adoption of new investment strategies in other countries. South Korea’s market resilience and increasing adoption highlight its potential as a critical player in the cryptocurrency landscape.
Looking ahead, market experts foresee further upside potential for Bitcoin, with the possibility of reaching new all-time highs. Ki Young Ju’s assertion that Bitcoin is unlikely to fall below $46,376, its price when spot Bitcoin ETF products debuted in January, provides additional reassurance to investors amidst market fluctuations.
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