Bitcoin price is at the moment buying and selling at a considerable premium on South Korean crypto exchanges – greater than $6,000 per coin in USD equal. However, up to now this so-called “Kimchi Premium” has signaled the tip of the bull pattern.

Is this an indication that issues  throughout the crypto market may quickly flip bearish? Or is there one thing else afoot occurring with the US greenback and the South Korean gained that’s inflicting the discrepancy?

Bitcoin FOMO Comes To A Boiling Point In South Korea, According To Price Premium

Bitcoin is an asset in contrast to anything on the earth earlier than it. There’s no firm concerned like shares; no nation like fiat currencies; nor does it have a bodily type like a commodity.

Because the decentralized cryptocurrency know-how is managed by no state actor, the underlying asset may some day change into the primary non-sovereign world reserve forex.

Related Reading | Mathematical Mystery: Why Did The Bitcoin Rally Stop At The Golden Ratio?

The crypto market like these different property, nonetheless, additionally trades globally, and is topic to deviations in value knowledge relying on how aggressive one area’s forex is being trade to purchase up BTC.

Once once more, crypto FOMO has taken maintain within the nation of South Korea, ensuing within the return of one thing known as the “Kimchi Premium.”

The Kimchi Premium has Bitcoin priced practically $6,000 larger in South Korea | Source: BTCUSD on TradingView.com

The Return Of The Kimchi Premium Could Spell Danger For The Ongoing Crypto Bull Run

The chart above demonstrates the sizable deviation between BTCUSD and BTCKRW. The discrepancy is roughly $6,000 USD forex and climbing. The crypto group has dubbed this uncommon phenomenon the “Kimchi Premium.”

Related Reading | Heads Up: Bearish Bitcoin Technical Pattern Shouldn’t Be Shrugged Off

It isn’t clear what’s inflicting such FOMO amongst South Korean traders, however the so-called premium hasn’t been round for the reason that final week of 2017.

The final time the Kimchi Premium was so distinguished, it was the height of the final bull market. | Source: BTCUSD on TradingView.com

Zooming out, the final time the Kimchi Premium moved away from the usual BTCUSD ticker priced in {dollars}, that was the grand finale for the earlier bull market.

While the USD buying and selling pair made decrease highs, the KRW buying and selling pair made one other larger excessive earlier than collectively falling into the 2018 bear market. Thus far, the premium has by no means been used as a sign to take motion, as traditionally, it hasn’t appeared typically sufficient to take motion on.

But its existence is plain, nor what got here after the 2 nation’s Bitcoin value tickers separated by this a lot up to now. Whatever the case could also be, the Kimchi Premium must be one thing to pay shut consideration to for the close to future.

Featured picture from Deposit Photos, Charts from TradingView.com