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Author Topic: Why there is an huge difference between KRW and USD markets ?  (Read 120 times)
Irlasos
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December 07, 2017, 09:07:59 PM
 #1

Hello,

I noticed there is an huge difference between Korean markets and USD markets: https://coinmarketcap.com/currencies/volume/24-hour/
As you can see, the BTC price is approximatively 16% higher on Corean market (~19000 USD) than on USD markets (~16000 USD).

Does someone can explain the reason of this difference ?

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brontosaurus
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December 07, 2017, 09:11:50 PM
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Every korean exchange may it be bithumb, Korbit or coinone is showing BTC at 19000. This is simple because korean people or people holding korean currency are demanding BTC much more than rest of the world. This means they are ready to pay much higher price rather than going all way around to exchange their KRW to USD first. If you look at markets closely you might also know that when btc rushed from 10k to 13k the same thing was happening with INR indian markets too. Its just simply becuase people of that particular country are demanding more btc and are even willing to pay a higher price for it.
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December 07, 2017, 09:12:56 PM
 #3

Hello,

I noticed there is an huge difference between Korean markets and USD markets: https://coinmarketcap.com/currencies/volume/24-hour/
As you can see, the BTC price is approximatively 16% higher on Corean market (~19000 USD) than on USD markets (~16000 USD).

Does someone can explain the reason of this difference ?
It is currently 6:00 AM in Korea, most of the people have not woken up yet (or at least woken up and getting on the cryptocurrency markets) and the bots trading throughout the night have been pushing the market in various ways, and those trends are being mirrored on US markets because people are buying from them and selling on SK markets, rinse and repeat (while they can). Once everyone starts to wake up on SK you'll probably see some selling off or more uptrends, not sure what direction it would end up taking right now to be honest. Might be some selling because the commoners will seek to secure their profits, or they might HODL. Not entirely sure.
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December 07, 2017, 09:44:12 PM
 #4

Hello,

I noticed there is an huge difference between Korean markets and USD markets: https://coinmarketcap.com/currencies/volume/24-hour/
As you can see, the BTC price is approximatively 16% higher on Corean market (~19000 USD) than on USD markets (~16000 USD).

Does someone can explain the reason of this difference ?
Bitcoin can be used by people that know how to bend the rules a bit. If not then they have to go with the regulations of their government. That is why the price is different in certain areas.

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December 07, 2017, 09:45:52 PM
 #5

Simple supply and demand. Koreans want BTC so their exchanges have more buy pressure than sell, making price higher than in the United States or elsewhere. Arbitraging is possible but maybe difficult.
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December 07, 2017, 09:52:06 PM
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I also realized that difference lately. As I saw this I immediately asked myself if there is not a lot of arbitrage trading happening with those huge price differences? I mean if I was a korean citizen, wouldnt it be smart to change my KRW to USD and then buy Bitcoin on eg Kraken and transfer it over to Bithumb and sell it for much more, rinse and repeat and make huge profits every day regardless of the price swings of Bitcoin. Please tell me if I missed something important here, I never tried something like this myself, Im just curious.

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December 07, 2017, 09:54:04 PM
 #7

I think it's because spreading and bitcoin volume in korea market is bigger than in USD market. and of course it affects the bitcoin price. and certainly the bitcoin price in the market will be higher if many investors are ready to buy, even if the bitcoin price is high.

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Irlasos
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December 07, 2017, 10:35:14 PM
 #8

I also realized that difference lately. As I saw this I immediately asked myself if there is not a lot of arbitrage trading happening with those huge price differences? I mean if I was a korean citizen, wouldnt it be smart to change my KRW to USD and then buy Bitcoin on eg Kraken and transfer it over to Bithumb and sell it for much more, rinse and repeat and make huge profits every day regardless of the price swings of Bitcoin. Please tell me if I missed something important here, I never tried something like this myself, Im just curious.

Exactly what I was thinking. But I don't know if there are brokers easily accessible for the pair KRW/USD.

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