Recent data indicates that despite the decline in the price of bitcoin, premiums in South Korea have decreased but still remain significantly higher than the global average. The premiums currently stand at around $1,800 to $2,000 above the global average price of bitcoin. Additionally, the South Korean won remains the second most traded fiat currency against bitcoin, accounting for 2.07% of all spot bitcoin trades, second only to the U.S. dollar.
The premium for bitcoin in South Korea has dropped from $4,000 to $2,000. Data from cryptoquant.com shows that the premium was around 12% in March but has now fallen to 2.79% as of May 11, 2024. Earlier this year, it was reported that bitcoin prices in South Korea were approximately $4,000 higher than the global average price reported by cryptocurrency price aggregation sites.
Currently, the premium has decreased to about $1,800 to $2,000 per unit, although prices still remain elevated compared to the global average. The leading South Korean exchanges, Upbit and Bithumb, continue to show premiums not only on bitcoin but also on smaller cryptocurrencies and ethereum, the second-largest cryptocurrency by market cap.
According to data from Cryptoquant.com, the premium for ethereum is currently around 2.83%, compared to nearly 11% in March. Upbit is currently ranked fifth among global exchanges, while Bithumb is positioned at 22nd. Upbit reported a trade volume of approximately $1 billion in the past day, while Bithumb registered about $298.23 million.
The South Korean won remains the second most traded fiat currency against bitcoin, accounting for 2.07% of all bitcoin transactions conducted in won. It is followed by the euro, yen, and pound. As the bitcoin market in South Korea stabilizes, the narrower premium indicates a landscape where traders may be aligning more with global pricing trends.
Despite the significant drop from its peak, the persistent premium suggests a strong demand for bitcoin in South Korea. The strong position of the South Korean won in the global bitcoin trade highlights the country’s continued importance in the crypto economy. The relationship between local and global prices is likely to continue evolving, reflecting broader trends in the cryptocurrency market.
What are your thoughts on the bitcoin premium in South Korea? Feel free to share your opinions in the comments section below.
