Bitcoin’s ‘Kimchi Premium’ Vanishes Again as Trading Range Tightens

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The spread between the price of bitcoin on South Korean and U.S.-based crypto exchanges, which returned in June and hit 16-month highs, has disappeared once again.A measure of how much more South Koreans pay for bitcoin, the spread, known colloquially as the “kimchi premium,” has reached remarkable levels, peaking at 54.48%, according to researchers at the University of Calgary. It then dropped and ultimately vanished, only to return again recently, running at around 5 to 10%.But last week, local newspapers started to notice that bitcoin was back to trading lower in won terms. The Dong-a Ilbo, one of the country’s major publications, reported on August 5 that bitcoin was priced just 2.15% higher in dollar markets than in won on South Korean exchanges.The deficit persists. On August 13, bitcoin was trading on Upbit at 13,678,000 won and quoted on CoinDesk at $11,429.14, which translates to 13,931,951 won, a difference of…

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