The Korea Premium Index peaked in November 2021, about the same time as Bitcoin did.
December saw a meteoric rise in the Korean Premium Index, a key indicator of the purchasing power of the South Korean market, which tracks Bitcoin.
After analyzing CryptoQuant, AMBCrypto has determined that the index is already at levels comparable to Bitcoin’s high in November 2021.
A common term for the percentage gap between the market prices of Korean and non-Korean exchanges is the Korea Premium Index, or Kimchi Premium.
In case you didn’t know, institutional investors are severely restricted in Korea; hence, the majority of market participants are individual individuals.
The country’s enormous demand for cryptocurrencies is the driving force behind this historical phenomenon.
The positive index demonstrated that retail investors were prepared to pay a premium for the acquisition. In addition, the increasing trend showed that an increasing number of merchants were ready to pay a premium for bitcoins.
According to CoinGecko, during the previous 24 hours, Bitcoin ranked third in terms of trading volume on Upbit, the biggest exchange in the country. In addition, more than seven percent of the exchange’s overall trading activity was in the BTC/KRW pair.
However, on Bithumb, another prominent cryptocurrency exchange in the East Asian country, the pair grabbed an astounding 48% of the whole volume.
The indicator gives important clues about price peaks, says a Cryptoquant researcher. They reasoned that the FOMO buzz and the ease with which Koreans could purchase cryptocurrencies on exchanges were to blame.
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