Bitcoin's 'Kimchi Premium' has surged to over 10%, raising concerns about short-term market behavior amidst declining trading volumes on South Korean exchanges Bithumb and Upbit. This situation is indicative of reduced retail trading activity, with analysts calling for caution. The Kimchi premium reflects the price difference of Bitcoin on Korean exchanges compared to global markets and has increased as a passive response to uncertainties in a strong dollar environment. DNTV Research analyst Bradley Park noted that most retail investors appear to be either fully invested or have withdrawn funds to participate in decentralized exchanges (DEXs). This growing premium does not point to retail overbuying but rather reflects market sentiment in current conditions. While the premium may rise with increased trading, it can also stabilize prices during significant drops on overseas exchanges, suggesting potential bearish implications for Bitcoin in the short term.

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