South Korea's Bitcoin Premium Narrows, Yet Remains Above Global AverageRecent figures show that despite bitcoin’s downturn in price, premiums in South Korea have diminished yet remain around $1,800 to $2,000 higher than BTC’s weighted global average price. Further metrics reveal that the South Korean won still ranks as the second most traded fiat currency against bitcoin, accounting for 2.07% of all spot bitcoin trades, only behind the U.S. dollar.South Korea’s Bitcoin Premium Drops From $4K to $2KRecent metrics reveal a decline in South Korea’s bitcoin (BTC) premium. According to data from cryptoquant.com, the premium approached 12% in March but has fallen to 2.79% as of May 11, 2024. Previously in March, Bitcoin.com News highlighted that BTC prices were approximately $4,000 higher than the global average reported by cryptocurrency price aggregation sites.
Currently, the premium has decreased from more than $4,000 to about $1,800 to $2,000 per unit, though prices remain elevated with a narrower spread. South Korea’s leading exchanges, Upbit and Bithumb, continue to show premiums not only on bitcoin but also on smaller cap coins and ethereum (ETH), the second-largest crypto asset by market cap.
Cryptoquant.com data indicates that ETH’s premium is currently around 2.83%, having also been close to 11% in March. Upbit ranks fifth among global exchanges as of this weekend. As of May 11, Bithumb ranks within the top 25 globally, positioned at 22nd. Upbit reported approximately $1 billion in trade volume over the past day, whereas Bithumb registered about $298.23 million.
The South Korean won remains the second most traded fiat currency against BTC, trailing the U.S. dollar, with around 2.07% of all BTC transactions conducted in won, followed by the euro, yen, and pound. As South Korea‘s bitcoin market stabilizes, the narrowed premium reflects a landscape where traders are possibly becoming more aligned with global pricing trends.
Despite a significant drop from its peak, the persistent, albeit reduced, premium indicates a strong demand for bitcoin within the country. With the South Korean won maintaining its strong position in the global bitcoin trade, it highlights the nation’s continued prominence in the crypto economy. The dynamics between local and global prices will likely continue to evolve, reflecting broader trends in the crypto market.
Source: https://news.bitcoin.com/south-koreas-bitcoin-premium-narrows-yet-remains-above-global-average/
