Bitcoin Diverges From Global Prices in South Korea — Third Major Discount Since FTX

With bitcoin trading between $65,962 and $73,669 this week, market data shows South Korea posted its deepest discount to global prices since December 2024.

Rare Bitcoin Discount Hits South Korea — Only Three Such Events Since 2022

Bitcoin is trading at a discount in South Korea, as metrics collected at 7 p.m. EST Tuesday show prices are 0.68% below the global weighted average. For instance, the weighted average currently sits at $69,697, while $BTC on Upbit changes hands at $69,220 at the same moment.

Typically, bitcoin trades at a premium in South Korea, commonly referred to as the ‘Kimchi Premium.’ According to the Korea Premium Index on cryptoquant.com, bitcoin remained in premium territory roughly 75% of the time over the last 12 months. Last Wednesday, March 4, however, $BTC prices in the country dropped to a level not seen since Dec. 7, 2024.

Bitcoin did breach the 2% threshold once between the November 2022 and December 2024 lows, on July 2, 2023. On that specific day, Blackrock refiled its exchange-traded fund (ETF) prospectus, adding Coinbase to the surveillance-sharing agreement section. On that day in 2023, the discount was 2.19% a hair lower than the recent 2.27% slide.

Cryptoquant data shows the price reached a 2.27% discount compared with global markets. $BTC closed at $72,670 per coin that day, according to historical records, which means in South Korea, the price hovered near $71,021. The discount on Dec. 7, 2024, was slightly deeper at 2.42% on that date. Before the December 2024 dip, the previous instance occurred on Nov. 4, 2022.

All three periods carry notable relevance. The 2022 discount occurred as FTX was unraveling. Nov. 4, 2022, came two days after the Coindesk report revealed that a significant share of Alameda Research’s assets consisted of FTT. Fast forward to Dec. 7, 2024, this was around the time $BTC was preparing to retest the psychological $100,000 mark after breaking through a few days earlier for the first time.

Lastly, the most recent discount in South Korea appeared on March 4, unfolding amid Middle East tensions tied to the conflict between the U.S. and Iran. As the escalation intensified, the country’s stock benchmark, the KOSPI (Korea Composite Stock Price Index), dropped about 7.2% on March 3. The following day, the KOSPI fell 12%, the same day $BTC recorded its widest discount in the country in one year and three months.

Whether the gap persists remains uncertain, but the timing offers a revealing snapshot of market sentiment. Historically, the Kimchi Premium reflects intense local demand, so its reversal often hints at caution among South Korean traders. With regional equities rattled and global tensions weighing on risk assets, the discount suggests domestic investors briefly stepped back.

For now, the spread serves as another reminder that bitcoin’s pricing quirks often mirror broader financial nerves.

FAQ 🔎

• Why is bitcoin trading at a discount in South Korea?
  Bitcoin is trading below the global average price in South Korea due to reduced local demand and recent financial market stress tied to geopolitical tensions and stock market declines.
• What is the Kimchi Premium in bitcoin trading?
  The Kimchi Premium refers to bitcoin historically trading at higher prices on South Korean exchanges compared with the global market due to strong domestic demand.
• When was the last time South Korea saw a bitcoin discount like this?
  The most recent comparable discount occurred on Dec. 7, 2024, with earlier instances linked to major market events such as the FTX crisis in Nov. 2022.
• How did the South Korean stock market perform during this bitcoin discount?
  The KOSPI index fell sharply around the same time, dropping roughly 7.2% on March 3 and 12% the following day as regional market stress intensified.

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