Bitcoin Prices Surge in South Korea as Global Crypto Market Eyes $385 Billion
Over the last week, as Bitcoin price rose above $8,000, the cryptocurrency market progressed upwards from $324 billion to $385 billion; with other leading cryptocurrencies also increasing by 10 to 20 percentage points.
Compared to other markets such as the US, Japan and Hong Kong, the price of Cryptocurrencies such as Bitcoin, Ethereum and Ripple up until last week were cheaper in South Korea. This lower price in Cryptocurrencies in South Korea’s Cryptocurrency exchanges such as Bithumb and Korbit seemed a bit peculiar, especially that generally; the value of Cryptocurrency has been quite higher in South Korea within the 5 to 30 percent region.
As a result of low supply compared to other regions, Cryptocurrencies are more costly in South Korea. Previously, South Korea had depended on foreign miners to supply Cryptocurrencies but there has been a significant drop in the supply of Cryptocurrencies after the country restricted foreign Cryptocurrency trades. As a result, the premiums on Cryptocurrencies have increased since last year.
With regards to these occurrences, analysts see the drop in Cryptocurrency rates in the country as strange and a proof of a bear market. Investors are no longer motivated to invest in the market even when the rates are lower. Since last year, investors were more willing to invest in the market with 30 to 40 percent premiums when FOMO or fear of missing out gripped the South Korean Crypto market.
For this reason when Bitcoin was trading at $20,000 at the end of last year, its value was $25,000 in South Korea.
The increase in premium rates in the country’s Cryptocurrency exchange indicates that there is an increase in demand for Cryptocurrency in the local market.