On Wednesday, at approximately 4:11 p.m. EDT, bitcoin’s value against the U.S. dollar stood at $54,709 per unit, reflecting a 3.41% decrease over the preceding 24 hours. Concurrently, in South Korea, the price of bitcoin was $57,027 per coin, representing a 4.23% premium. According to data from cryptoquant.com, the South Korean premium has seen an increase this week.
South Korea’s Bitcoin Market Heats Up, Upbit and Bithumb Record Premiums
While bitcoin (BTC) prices remain lower, they have consistently carried a premium on major South Korean exchanges like Upbit and Bithumb. Although this premium in South Korea is not unusual, it recently dipped below the 1% range. In March and April 2024, the premium for a single bitcoin in South Korea neared 10%. On July 26, however, it had dropped significantly to 0.47%, based on cryptoquant.com metrics.
However, the decline in BTC value has spurred the premium in South Korea, which climbed to 5.94% on Aug. 4, 2024, as reported by cryptoquant.com data. Bitcoin.com News archived snapshots of coinmarketcap.com and Upbit’s exchange page to compare prices at 4:11 p.m. EDT on Aug. 7, 2024. The data (1, 2) indicated a 4.23% premium at that moment, with BTC trading at $57,027 and the global average at $54,709.
Typically, a premium in South Korea is considered a bullish signal, often linked to strong retail demand and positive sentiment within the South Korean market. Moreover, data from cryptoquant.com shows that a premium also appeared during the market downturn on Aug. 4-5 on the U.S. crypto exchange Coinbase. A premium on Coinbase suggests that U.S.-based buyers are willing to pay slightly more than those on other exchanges.
It may further indicate increased demand from institutional investors or retail buyers on the platform. However, the premium on Coinbase is considerably lower than the traditional premium observed in South Korea. Currently, the South Korean won ranks as the fifth most-traded currency with BTC and is the second most-traded fiat currency with bitcoin after the U.S. dollar. On Aug. 7, the won accounted for 1.82% of BTC’s daily settlements.