{"id":10997,"date":"2025-02-03T08:32:04","date_gmt":"2025-02-03T08:32:04","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=10997"},"modified":"2025-02-03T08:32:04","modified_gmt":"2025-02-03T08:32:04","slug":"bitcoins-kimchi-premium-jumps-to-10-worrying-sign-for-btc-in-short-term","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=10997","title":{"rendered":"Bitcoin&#8217;s \u2018Kimchi Premium\u2019 Jumps to 10%, Worrying Sign for BTC in Short-Term"},"content":{"rendered":"<div>\n<p>Premiums of an <a href=\"https:\/\/www.coindesk.com\/markets\/2024\/03\/07\/bitcoin-trade-that-gave-bankman-fried-his-millions-returns-in-south-korea\" target=\"_blank\">infamous bitcoin (BTC) trade<\/a> popularized by Sam Bankman-Fried have popped back to significant levels amid a market bloodbath caused by rising U.S. tariffs, a market sign that some consider bearish in the short term.<\/p>\n<p>The so-called Kimchi premium, or the difference in bitcoin prices on Korean exchanges compared to global bourses, rose just over 10% as of Asian morning hours Monday as <a href=\"https:\/\/www.coindesk.com\/price\/bitcoin\" target=\"_blank\">BTC dropped 6%<\/a> in the past 24 hours.<\/p>\n<p>The arbitrage involves buying bitcoin on a global exchange and selling it on a Korean exchange for a riskless profit in Korean won. Pocketing the actual gains is difficult due to South Korea&#8217;s strict capital controls, but the premium is often used alongside other factors to gauge market sentiment.<\/p>\n<p>Trading volumes on Korean exchanges Bithumb and Upbit have dropped significantly in the past week, indicating a drop in retail trading activity. Meanwhile, balances of dollar-margined stablecoin tether have been on the decline on both exchanges with instances of withdrawal delays.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.sanity.io\/images\/s3y3vcno\/production\/a7e164e676d091b2587194c3a1cac686172a74ea-1280x720.jpg?auto=format\" alt=\"\"><\/p>\n<p>\u201cIt seems that most retail investors are either already fully invested in spot or have withdrawn their funds to engage in DEX activities,\u201d Seoul-based DNTV Research analyst Bradley Park told CoinDesk in a Telegram message. <\/p>\n<p>\u201cIn this situation, the kimchi premium doesn\u2019t represent retail investors\u2019 overbuying; rather, it appears to have risen as a passive response to the uncertainty of a strong dollar environment,\u201d Park added.<\/p>\n<p>\u201cThe kimchi premium can surge excessively when trading volume increases, but it can also help defend prices when the asset prices on overseas exchanges drop significantly,&#8221; Park said, adding that was likely \u201cnot a positive sign\u201d in the short-term for bitcoin.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Premiums of an infamous bitcoin (BTC) trade popularized by Sam Bankman-Fried have popped back to significant levels amid a market bloodbath caused by rising U.S. tariffs, a market sign that some consider bearish in the short term. The so-called Kimchi premium, or the difference in bitcoin prices on Korean exchanges compared to global bourses, rose [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-10997","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/10997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10997"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/10997\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}