Bitcoin is trading for higher levels overseas and that's probably a good thing for where we are going
The Kimchi Premium is back in Bitcoin!
That's where the price of bitcoin trades at higher levels on Korean Exchanges than it trades on other exchanges located in other jurisdictions.
The reasons for this could be many, but most likely related to the fact that Korean Exchanges are somewhat closed off form the rest of the world due to government restrictions.
This means that as demand surges on those exchanges, it is more difficult for exchange trading among themselves to take place.
Here you can see the premium has been climbing as of late:
This is potentially good news because it's what saw during the last major bull market as well.
It was something that first started in late 2016 and lasted basically until early 2018.
At one point I remember seeing the Kimchi premium reach over 50% on bitcoin prices.
I suspect that eventually traders figure out a way to buy on other exchanges and move that money over to Korean Exchanges and sell for higher prices.
The end result is higher prices for everyone as the price gets pulled higher everywhere else as well.
So, let the Kimchi Premium soar and watch global prices rise to meet it in the sky.
Posted Using LeoFinance Beta