Political Instability
In South Korea• Республика Корея Fuels
Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Kimchi Premium
Surge
Political Instability In South Korea• Республика Корея Fuels Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Kimchi
Premium Surge
by Ash Tiwari
5 minutes ago
in Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin News
0
The Bitcoin (BTC• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin) ‘kimchi premium’ has returned to South Korea• Республика Корея s
cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта market as the country grapples with political instability. This
has led to a weakened Korean won (KRW) and a higher price for the leading
cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта.
Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Kimchi Premium Surges In South Korea• Республика Корея
According to CryptoQuant CEO Ki Young Ju, the KRW-USD trading pair has reached
a 15-year low, reflecting dwindling confidence among South Koreans in their
fiat currency. The depreciating won has driven South Koreans to invest in
emerging assets like Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin to safeguard the purchasing power of their KRW
during times of economic uncertainty.
Related Reading: Cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта Tax Postponed! South Korea• Республика Корея Extends Breathing
Room To 2027
In a post on X, Ju explained that South Korean• Республика Корея crypto traders are increasingly
converting KRW into cryptocurrencies• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта such as Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin and USD-pegged stablecoin
USDT on the Upbit exchange, where BTC is trading at a premium of 3-5%. This
price difference, commonly referred to as the Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin ‘kimchi premium,’ occurs
when BTC trades at a higher price on South Korean• Республика Корея exchanges compared to global
platforms. Source: Ki Young Ju on X
Typically, the so-called kimchi premium arises due to high local demand ,
increasing regulatory barriers, and limited arbitrage opportunities in South
Korea• Республика Корея s cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта market. However, in this instance the premium is
primarily driven by the weakening KRW due to rising political turmoil in the
country.
At the time of writing, Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin is trading in South Korea• Республика Корея for 145,000,000 KRW
or approximately $98,600, while on a global exchange like Binance• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Binance, BTC is
trading at $95,315. The difference between these platforms highlights the
impact of the kimchi premium.
What’s Causing The KRW Decline?
The South Korean won’s decline can be attributed to ongoing political unrest,
which has intensified since December 3. On this date, the now-impeached,
former president Yoon Suk Yeol declared martial law for six hours before
reversing the decision. Following this, South Korea• Республика Корея’s parliament impeached Han
Duck-soo, the country’s prime minister and acting president.
Related Reading: Crypto Controversy: Jail Awaits Former South Korean• Республика Корея
Politician – Details
These dramatic developments have sent shockwaves through global markets,
undermining confidence in South Korea• Республика Корея’s democratic institutions and raising
fears of the country facing its worst political crisis• Политика » Политические кризисы in decades. The monthly
chart below illustrates how the KRW has plunged to its lowest value against
the USD since March 2009.
Source: KRWUSD on TradingView.com
In a separate post on X, Jeff Park, head of alpha strategies at investment
manager Bitwise, highlighted that South Korea• Республика Корея’s political turmoil centers on
allegations of election fraud and a loss of trust in the country’s National
Election Commission (NEC). Park commented:
The use of impeachment as a political tool, combined with allegations of
foreign election interference, underscores the fragility of democracy in the
face of disinformation. This is not just a Korean story; it’s a warning for
democracies worldwide.
The political unrest in South Korea• Республика Корея has sent its cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта market into a
frenzy , leading to record-breaking trading volumes. At press time, BTC trades
at $95,315, down 0.2% in the past 24 hours. BTC trades at $95,315 on the daily
chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Charts from X and TradingView.com