Bitcoin Kimchi Premium Collapses as Korean Crypto Market Cools


Bitcoin Kimchi Premium Collapses as Korean Crypto Market Cools

  coinedition.com 23 July 2024 19:54, UTC

Kaiko’s research data reveals that the average daily trading volume on the Upbit crypto exchange fell by $860 million in June, a 76% decrease compared to its Q1 value. Bithumb also saw a 70% decline in trading volumes, with both exchanges reflecting the subdued mood of the Korean cryptocurrency market.

In comparison to crypto exchanges from other jurisdictions, Coinbase’s average daily trading volume dropped by 40%. Bullish reported a 38% decline, while Bybit experienced a modest 8% drop in average daily trading volume over the period under consideration.

Analysts attribute the significant decline in trading volume among Korea-based crypto exchanges to potential regulatory adjustments. The Korean government recently implemented the Virtual Asset User Protection Act, raising concerns among crypto users who suspect a potential mass delisting could be imminent.

Notably, the Bitcoin Kimchi Premium, which represents the price difference between BTC in Korean and global markets, also experienced a sharp drop. Kaiko’s data shows the premium rallied to a multi-year high of 14% in March before plummeting to just 3% in July, suggesting demand has cooled off considerably.

The current developments could reverse the gains made by top Korean crypto exchanges in recent months, with Upbit and Bithumb aggressively listing new assets. The surge in asset listings pushed Bithumb’s volume to an all-time high in January after the exchange launched a five-month zero-fee campaign between October 2023 and February 2024.

Nonetheless, Kaiko’s research noted that Bithumb retained some of its gains post-promotion. Bithumb’s market share rose to 30% in June, climbing from just 11% a year ago.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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