Kimchi Premium for Bitcoin price declined significantly more than 11% in the last couple of minutes
Drop in the premium signifies the drop in the Bitcoin prices in the South Korean exchanges
Despite the drop, bitcoin price is still manifesting a strong bullish trend approaching very soon
Bitcoin Arbitrage Trading Cashed Out!
Kimchi Premium that first appeared in 2016 and gained traction in 2018 by surging above 50%, has dropped below 10% at the press time. The premium which is the price difference between South Korean exchanges and the Western/Asian exchanges experienced a steep drop in less than an hour.
The premium is mainly for the Bitcoin prices which in most of the times has an increased value in the South Korean exchanges. Recently, BTC price hit more than $66,000 in South Korea whereas the price remained trading around $57000 in other exchanges.
Taking profit from the price difference is called the Bitcoin Arbitrage trading and it is speculated that many have figured to Arbitrage the Kimchi Premium opportunity. As per the CEO of Crypto quant, Ki Young Ju, the current drop may be due to Upbit withdrawal and deposit suspension.
Moreover, the trading volume on Upbit exchange, one of the largest Korean exchanges, had exceeded the volume of Binance. Another interesting point raised by the analyst was the increased BTC inflow in another Korean exchange Bitthumb. And hence the possibility of the whales depositing BTC to Korean exchanges stand high.
Bitcoin Price Remains Bullish
Bitcoin price at the press time has failed to break the neckline of ‘W-Shaped’ pattern and dropped notably. The price surged close to $60,000 in the ear;y trading hours, yet failed to surpass and decline to the current levels.
Despite the drastic pullback, the BTC price remains bullish as the exchanges are getting drained out of the bitcoin balance. According to on-chain analytics platform Cryptoquant, nearly 12K BTC flowed out from Coinbase.
Moreover, more than 80,000 BTC outflow was registered in all the other exchanges including Coinbase in the past 24 hours. Moreover, the miners are also holding the asset instead of selling off to the exchanges. Such a huge outflow from exchanges indicates an extremely bullish bitcoin price movement approaching.