Crypto analysis firm CryptoQuant recently shared an insightful analysis highlighting the overpricing of the Korean Premium in Bitcoin price, signaling a potential price peak. The phenomenon, often used to identify price tops, indicates strong buying pressure from Korean retail investors, known for their immediate access to cash and susceptibility to FOMO (Fear of Missing Out) scams.
The Korea Premium Index (14-Day Moving Average) currently reflects the Korea Premium Index during Bitcoin’s price peak in Q4 2021, according to analysts at CryptoQuant. This similarity has piqued the interest of analysts and investors, who are eager to see if the Korean Premium Index will once again provide valuable insights into price peaks.
The Korean Premium, also known as “Kimchi Premium”, represents the difference in cryptocurrency prices on South Korean exchanges compared to global exchanges. This arbitrage opportunity is mainly observed in the price of Bitcoin. The term “Kimchi Premium” is derived from the famous Korean dish and has been a prominent feature in the cryptocurrency market since 2016, as reported by the University of Calgary.
It’s essential to note that this information is not investment advice, but rather a valuable insight into the dynamics of the cryptocurrency market and the potential implications for price movements.
