To those who are thinking the Bitcoin craze has calmed down and faded since the December of 2017 , you are definitely wrong. While authorities tried giving it a hard time after it’s fall, the global average volumes are still high and there’s a considerable increase in the number of Bitcoin enthusiast.
The average daily trading volume has risen up to 80% from last November when it was $4.7 billion. February’s reading listed a whooping $8.2 billion. However, the major change was brought about by “kimchi premium”, after it was discussed in U.S regulations last January.
Whatever the distinct reason for the demand maybe, South Koreans pay a higher price for bitcoins than investors in other countries. This has been called the “kimchi premium”.
During the November-December last year, the bitcoin storm was at it’s peak and the market dynamics were beyond mere buying and selling. South Korean market flourished accounting more than 10% of the global Bitcoin trading. But the beginning of February found the Kimchi Premium prices come down at $400.This resulted in exclusion of Kimchi prices by global marketing sites. For instance, while calculating the market prices globally, the Korean market drop forced CoinMarketCap to exclude Korean prices which again led the markets to fall distinctly as the change wasn’t comprehended by all.
CoinMarketCap have since then recovered and stated the Korean prices in calculating the averages globally. This increasing speculation regarding Kimchi made the South Korean Government intervene the matter and re-enforce that the Koreans haven’t really given up on Cryptocurrency.
The Kimchi Premium had an impact not just on Bitcoin’s market but other major virtual currencies found a resemblance in it’s turn. The Ethereum Premium, one of the biggest exchanges in Korean and worldwide serves as the best example to enlighten this issue. In January, it stood at a record high of 53% but fell down to -5% in February. However,the month of March seems hopeful enough for this leading exchange.