On 7th of December the bitcoin price has surpassed $18,000 in South Korea. The average price of bitcoin in the global market across major regions including the US and Japan remains at $16000. Thus, in the South Korean bitcoin exchange market bitcoin is being traded with an average premium of $2000.
The reason for this is the limited liquidity. The South Korean bitcoin market only accounts for 6.8 percent of the global bitcoin market. But lately the demand for the cryptocurrency has surged at an unprecedented rate. This is how the limited availability and supply of bitcoin is forming significantly high premiums.
Tony Lyu, Korbit founder and CEO, stated:
“Word just spreads really fast in Korea. Once people are invested, they want everyone else to join the party. There’s been this huge, almost a community movement around this”.
Frequently, the South Korean and Japanese bitcoin markets have had a premium of over 5 percent. Currently, the South Korean bitcoin market is showing a premium of nearly 20 percent. Although there are people who want to make a profit out of this, taking advantage of the opportunity in South Korea is very difficult. Even more, without having a local person in South Korea, achieving this is impossible. No matter what, there has to be a person there to process trades for the foreign exchange account holder.