Data from Coingecko confirmed that Bitcoin was selling at a premium price in the South Korean market. BTC was exchanged at over $69K on Upbit and an average of $68K on other global exchanges like Binance and Bitget.
A reverse ‘Kimchi Premium’ was experienced in mid-October when the BTC price in South Korean exchanges dipped below the global average until Oct. 20th. The recent FOMO in South Korea’s crypto market drives Bitcoin prices higher as BTC demand surges. Coingecko’s data further revealed that BTC/KRW was currently the most traded pair on Upbit, with a 24-hour trading volume of $225.6M.
Bitcoin trades above global prices in South Korea as FOMO returns
Looks like the Kimchi Premium is back in action! South Koreans are diving into Bitcoin. Who’s feeling that FOMO? Let’s see where this goes!
— Vass (@Va77ss) November 4, 2024
CoinMarketCap’s data on Upbit and U.S.-based CEXs confirmed that there was a rise in BTC demand among South Korean BTC investors as fear of missing out (FOMO) crept in. The recent upswing in Bitcoin’s price following interest rate cuts from major central banks led to increased BTC investment.
CryptoQuant’s Korea Premium Index data showed that the premium price of BTC has ranged between 0.60% and 2.21% since Oct. 21. The data revealed that the premium price rose to over 2% on Oct. 24 before dropping to 1.93% by Oct. 31 (Halloween) and further to 1.1% as of Nov. 3.
According to CryptoQuant’s data, rising premium prices indicated strong buying pressure from South Korean retail investors since there were regulations against stablecoins and institutional investors. The willingness of Korean investors to pay a premium for BTC purchases shows strong Korean buying power and growing FOMO in the market.
The recent BTC rally in the South Korean crypto market comes amid optimism in the regulatory outlook following the U.S. elections and the anticipated Fed rate cuts in November. Bitcoin trading picked up as the U.S. elections drew closer because both presidential candidates tried to engage the crypto community.
Kaiko research also revealed that South Korean BTC investors saw an upside potential for Bitcoin following the U.S. elections regardless of who won the elections. The data from Kaiko implied that South Korean BTC traders anticipated record-high Bitcoin prices post-election.
Bitcoin continues on an uptrend in overall performance as it gains early momentum
Coingecko’s data showed that Bitcoin’s price surged 8.8% in the last 30 days to hold at the $67K to $69K range. As of Nov. 4th, its market cap stood at $1.33 trillion, with a 24-hour trading volume of $40.23 billion (+27%).
The data confirmed an increase in BTC activity, although the current Bitcoin price is 8.65% lower than 2024’s all-time high of over $73,737.94. Bitcoin also continued to show increased volatility, which is expected to increase further after the U.S. presidential election results.
The falling exchange reserve also indicates low selling pressure, meaning most investors bought Bitcoin and intend to HODL for longer.
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