The post Bitcoin’s Kimchi Premium surges as analysts set price target at $200k by Q2 2025 appeared on BitcoinEthereumNews.com.

Bitcoin’s Kimchi Premium is on fire, hitting levels not seen in months. This metric, tracking the price gap between Bitcoin on South Korea’s Upbit exchange and Coinbase, has jumped to 3-5%, according to data from CryptoQuant. This means one thing: South Korean investors are pouring into Bitcoin like it’s their last lifeline. And why wouldn’t they? The country is a boiling pot of political chaos, economic anxiety, and financial uncertainty. South Korea’s troubles are stacking up. President Yoon Suk Yeol pulled the country into a tailspin earlier this month with a disastrous martial law declaration that lasted just six hours. By mid-December, the National Assembly impeached him. Then came another shock—acting President Han Duck-soo was booted out by parliament, making history as the first acting leader to face impeachment. While politicians play musical chairs, the South Korean won isn’t holding up—it’s down 0.35% against the U.S. dollar. South Korean investors flock to Bitcoin amid turmoil Crypto fever is nothing new in South Korea, but the current one is quite different. The Kimchi Premium, named after the iconic Korean side dish, has always been a telltale sign of retail investor demand. Right now, it’s screaming demand. According to Ki Young Ju, CEO of CryptoQuant, the country’s economic problems are driving wealth outflows like never before. “Inflation fears are making people convert their won into U.S. dollars, Bitcoin, and gold,” Ju said. And here’s the thing, most of South Korea’s crypto activity comes from individual investors because corporate accounts are banned on local exchanges. But this isn’t just about people ditching banks for crypto exchanges. It’s also about South Korea’s strict currency controls and anti-money laundering rules, which push up premiums. Local exchanges often see trading volumes higher than stock markets. Stablecoins like Tether’s USDT are also part of the story. Tether’s…

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Filed under: News - @ December 27, 2024 6:20 pm