- Bitcoin surpasses $60K, hitting a 24-hour high of $61,389.
- South Korea experiences a notable premium, known as the ‘Kimchi premium,’ with local platforms showing prices $2,251 higher.
- Upbit and Bithumb contribute significantly to the global cryptocurrency transactions, reflecting a surge in demand.
Bitcoin’s Soaring Heights and the Kimchi Premium
The global Bitcoin rally reached new heights on Wednesday as the cryptocurrency breached the $60K mark, reaching a peak of $61,389 within 24 hours. Simultaneously, South Korea witnessed a distinctive premium in local bitcoin prices, with platforms like Upbit and Bithumb displaying rates $2,251 above the international exchange rate. This phenomenon is commonly referred to as the ‘Kimchi premium,’ a trend where the value of Bitcoin in South Korean won exceeds the standard global exchange rate, particularly during bullish trends.
As of 11:30 a.m., the global exchange rate stood at $61,213, while Upbit listed Bitcoin at $63,463, marking a significant premium. Other major South Korean exchanges, including Bithumb, Korbit, and Coinone, also reflected elevated prices when compared to the U.S. dollar equivalent of the Korean won used for cryptocurrency transactions. Upbit and Bithumb, in particular, emerged as significant hubs of trading volume, with transactions worth billions of dollars on Wednesday.
South Korea’s Impact on Global Cryptocurrency
Transactions South Korea played a pivotal role in the 2024 bitcoin uptrend, contributing to 6.5% of the global $122 billion in cryptocurrency transactions over the last day. Upbit alone saw transactions totaling $5.97 billion, while Bithumb reported $1.97 billion in trades. Notably, the South Korean won stands as the second most traded national currency against cryptocurrencies, following the U.S. dollar. This surge in engagement is part of a broader global trend, with over 30 countries, including China and India, experiencing all-time highs in Bitcoin value.
Galaxy’s CEO, Mike Novogratz, emphasized the current phase as a period of “price discovery” for Bitcoin. With BTC reaching $63,967 per unit, just a 10.5% increase away from surpassing the record high set in November 2021, there is a heightened worldwide interest in the crypto bull market. This signifies a global surge in demand for the limited digital asset, marking a pivotal moment in Bitcoin’s journey.