The South Korean Bitcoin premium appears to have returned, signalling that the gains of the last two weeks might indeed be a crypto recovery phase. The price of Bitcoin on Bithumb, the largest cryptocurrency exchange platform in South Korea is $9,016.96 which currently constitutes a premium of 1.1 percent.
The emergence of the South Korean Bitcoin price premium most likely indicates an increase in local demand for Bitcoin in the country. This is means that investor confidence has increased and more money is being put into the market.
The absence of the South Korean Bitcoin price premium has been something of a misnomer for analysts during the recent Bitcoin price increase. Not just only Bitcoin, but other cryptos had been cheaper in the country than the rest of the world which indicated a bear market run in the country even when cryptos appeared to be recovering. Historically, crypto prices in South Korea have always been higher than in the rest of the world. The crypto price premiums ranged from as low as 5 percent to as high as 30 percent.
The cryptocurrency supply in the country is quite low as it depends largely on Chinese and Japanese miners for its crypto supply. The ban on foreign crypto traders also contributes in creating a crypto scarcity in South Korea. Hence, the price of cryptos in the country is always expected to exceed the global average. During the peak Bitcoin price period in mid-December 2017, the price of Bitcoin in South Korea was $25,000 while the rest of the world was still below $20,000.
For the first time in 2018, Bitcoin is experiencing back-to-back weekly gains. With the appearance of the South Korean crypto premium, investors might become optimistic about the market, triggering a consolidated bull run that could see crypto prices reach record levels. With the tax filing season over in the United States, a massive reduction in Bitcoin selloffs is expected. Institutional investors in the market are also expected to increase in the second quarter of the year in the U.S.
All of these happenings might justify the predictions that have been made concerning the market that prices will go up, starting in the spring. American and Asian mainstream investors with deep pockets coming into the crypto market can be a catalyst for another crypto boom.
Particularly encouraging for crypto enthusiasts is the fact that the price increase isn’t limited to Bitcoin. The altcoin market also seems to be experiencing a significant boom as well. Apart from the major coins like Ethereum, Litecoin, and Ripple, some ERC20 tokens have also gone up too. Aion, Zilliqa, ICON, and 0x are among some of the biggest gainers. It shows that investors are getting comfortable enough to put up equity in the smaller coins. On the whole, it makes for a healthier and diverse crypto market.
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