South Korean Virtual Asset Market "Reverse Kimchi Premium" Phenomenon Continues to Intensify

TechFlow news, August 11, according to Yonhap News Agency, the phenomenon of "reverse Kimchi premium" in the South Korean virtual asset market has continued to intensify this year. According to monitoring by on-chain data platform CryptoQuant, the average Bitcoin Kimchi premium index in early August was -0.48%, and the Ethereum average was -0.49%, indicating that domestic prices were lower than those on overseas exchanges.

Out of 221 days this year, the number of days with a reverse Bitcoin Kimchi premium reached 123, marking the first time since CryptoQuant began tracking this data in July 2020 that it exceeded the number of days with a positive premium. The record for the longest consecutive streak was also recently broken—from June 20 to July 24 this year, a reverse premium was recorded for 35 consecutive days, surpassing the previous historical record of 23 days.

Analysts pointed out that the continued expansion of the reverse Kimchi premium mainly stems from three factors: first, the South Korean stock market continues to strengthen, attracting a large number of investors to shift from the crypto market; second, tighter regulations have prevented new services such as derivatives from launching, suppressing the inflow of new funds; third, the crypto asset taxation policy is about to be implemented, further reducing investment attractiveness.