Flash Crash Means Bitcoin Trades Higher in Korea as Kimchi Premium Soars
The Kimchi Premium, a term referring to the higher prices for Bitcoin on South Korean exchanges, hit a three-year high, trading 12% above global prices. This spike is attributed to capital controls in Korea, which complicate transferring money in and out of the country. As retail investor demand surged following a flash crash in Bitcoin's price, local prices soared while institutional investments remain restricted. On Monday, Bitcoin fell to $92,876 following U.S. tariffs against imports from China, Canada, and Mexico, but rebounded to $99,457 as trade agreements were delayed. Historical data shows that while the Kimchi Premium has reached peaks of 21.5% in 2022, it currently remains strong at nearly 7%. The fluctuation of Bitcoin prices reflects broader market dynamics, influenced by geopolitical events and regulatory actions.
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