South Korea’s Kimchi Premium is back. Bloomberg first reported the move, and CoinGecko data cited by Bitcoin Magazine shows bitcoin trading at nearly a 1% premium on Upbit, the country’s largest exchange, compared with Binance.
Bitcoin trades higher on Korean exchanges again
The Kimchi Premium refers to periods when bitcoin changes hands at a higher price on South Korean exchanges than on offshore venues. The term takes its name from kimchi, a well-known Korean dish. Bitcoin Magazine said the gap has reopened as retail investors return to the market.
The report tied the pattern to the structure of South Korea’s market, which remains partly insulated from external flows. Strong local retail demand, combined with strict capital controls and trading rules, has historically pushed prices higher there than in other jurisdictions.
In South Korea, the BTC/KRW pair is more common than the BTC/USD pair seen elsewhere. When demand for the asset rises, local pricing can climb above overseas markets.
A gauge of retail FOMO
The article said the premium has been described as an indicator of retail FOMO because South Korea has few notable crypto funds and maintains tight controls on capital movement.
According to the report, the premium reached as high as 21.5% in 2022.
Bitcoin up 24% over the past month
Bitcoin was recently trading at $78,287, unchanged over the past 24 hours, Bitcoin Magazine wrote. It said the asset was also at the same level as seven days earlier, though it had rallied 24% over the past month.
The article linked that rise to a U.S. Treasury statement in August saying it would at least double the size of its liquidity-support buyback operations. Bitcoin Magazine said the announcement hurt the dollar, while non-yielding assets such as bitcoin and gold benefited.
During the same week, President Donald Trump said the long-awaited crypto Clarity Act was an important piece of legislation and urged lawmakers to move it forward.
Polymarket traders price in a move above $82,500
Bitcoin Magazine also cited Polymarket, where traders were giving bitcoin a 59% chance of finishing the month above $82,500.
The article said crypto industry leaders have been calling for clearer rules to distinguish digital assets classified as securities, commodities, or payment stablecoins. News that regulators may soon have such a framework has typically supported crypto markets, according to the report.
Against that backdrop, Polymarket traders are betting on bitcoin rising above $82,500 this month, prompting some to argue that the bear market may be over.
The report first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.