Subsequent to attaining a new yearly high of around twenty six percent, the so-called Kimchi premium has normalized and returned to null.
The newest contrary price developments in the digital asset markets have normalized the Korean BTC premium dubbed the Kimchi premium. With the boosted volatility, however, specialists caution traders to be extremely cautious as the market is still over-leveraged.
The Kimchi premium signifies the difference in BTC’s price on global cryptocurrency exchanges and such functional in South Korea. As per media reports in early April, the metric named after a traditional Korean side dish, had surged to a new yearly high of more than twenty percent.
In spite of cooling off temporarily at the time, the difference continued to surge and touched yet another record level of approximately twenty six percent. This signifies that when Bitcoin traded at around fifty-eight thousand dollars on non-South Korean crypto exchanges, it was well above seventy thousand dollars on local platforms.
CryptoQuant, a crypto analytics firm outlined the performance of the Kimchi premium, which has slowed down in recent weeks. At one point, the metric went even to negative territory but has stabilized now and “became zero.”
Nonetheless, Ki Young Ju, the CEO of the firm warned investors that “the market is still over-leveraged” and advised them to be patient.
In other news coming from the East Asian nation, South Korea is looking to tighten up virtual asset regulations. As per The Herald, the number of illegitimate transactions involving virtual currencies has gone up remarkably in the past couple of months as their fame skyrocketed.
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