Bitcoin is trading at significantly higher prices in South Korea due to the 'Kimchi Premium' – the price difference of Bitcoin between the South Korean market and the world – which recently hit a 3-year high, according to data from CryptoQuant.

📈 What is Kimchi Premium? Why is it Increasing?

“#KimchiPremium ” is the phenomenon where Bitcoin is priced higher on South Korean exchanges compared to international exchanges. This phenomenon occurs due to:
✅ Strict capital controls: South Korea restricts the flow of money in and out of the country, making trading Bitcoin with Korean won (#KRW ) more popular than using USD.
✅ Individual investment demand: Financial institutions in South Korea cannot invest in Bitcoin, so most of the demand comes from retail investors. When demand is high, Bitcoin prices on South Korean exchanges also rise sharply.

Earlier this week, the Kimchi Premium rose to 12%, the highest since 2022. Previously, the premium had reached 21.5% in 2022.

💥 Bitcoin Price Increase in South Korea After Unexpected Crash

This price difference exploded after Bitcoin dropped sharply on Monday, right after former President Donald Trump's announcement of tariffs on Canada, China, and Mexico.

📉 Bitcoin dropped to a low of $92,876 before recovering to $99,457 after the US temporarily suspended tariffs on Mexico and Canada. However, the 10% tariff on Chinese goods remains in effect, and China has retaliated by imposing tariffs on natural gas and pickup trucks from the US.

💬 Julio Moreno, head of research at CryptoQuant, stated: 'This premium has risen sharply due to demand from South Korean retail investors, especially after the price crash on Monday.'

📊 Currently, the Kimchi Premium has decreased to 7%, but it is still the highest in the past 3 years.

🔎 Impact on Investors

🔥 Price difference opportunity: Investors can find ways to take advantage of this difference to profit, but transferring money in and out of South Korea faces many restrictions.
⚠ Market volatility: The US-China trade tensions continue, which may affect market sentiment and Bitcoin prices in the near future.

With the current situation, the Kimchi Premium may continue to fluctuate significantly, especially if Bitcoin experiences other unexpected changes. 🚀 #anhbacong