Bitcoin Crosses $100,000 Mark, But South Korean Market Sees Rare Discount
South Korean Premium Reverses as Bitcoin Price Soars, Reflecting Divergent Market Sentiment
As Bitcoin returns to the six-digit price range, an unusual phenomenon has emerged in South Korea – a market known for its “Kimchi Premium” – a high price difference compared to the global average. According to data from CryptoQuant, as of May 11, 2025, major exchanges like Upbit and Bithumb are trading Bitcoin at a 0.76% discount to international exchanges like Binance and Coinbase.
This marks one of the few times the South Korean market has seen a discount compared to the rest of the world, especially as Bitcoin has fluctuated wildly from $103,133 to $104,841 over the past 24 hours.
From “Kimchi Premium” to “Kimchi Discount”: Signals of a Market Reversal
The reversal began on May 2, when premiums in South Korea fell slightly by 0.43%. The decline continued to deepen on May 9 and 10, before officially moving to a discount of 0.76% on May 11. Notably, just a few days earlier, on May 6, premiums here had peaked at 3% — indicating that investor sentiment in the country is volatile and unpredictable.
According to experts, the shift to a discount in the South Korean market could reflect a number of factors such as weakening domestic demand, cautious sentiment after a rapid increase, or concerns about tightening domestic regulations.
Meanwhile, US investors continue to buy
In contrast to the trend in South Korea, the Coinbase Premium Index – which tracks the difference between BTC prices on Coinbase Pro and Binance – has remained positive since April 20. The premium in the US is often a signal of strong buying from institutional investors, especially as spot Bitcoin ETFs become more popular and accessible.
Despite two “pauses” on May 4 and 8, the overall trend suggests that the US remains the main driver of the current rally.
Could the South Korean discount be temporary – or an early warning?
While a discount of less than 1% is not alarming, it is a rare sign in the context of Bitcoin’s explosive trading week. Analysts say that if the trend continues, it could signal a slowdown in the overall rally or hint at an upcoming technical correction.
In the long run, this difference could be exploited by arbitrageurs to buy cheaply on Korean exchanges and sell internationally – thereby reducing the price gap.
Conclusion
The reversal of premiums in Korea amid Bitcoin’s big rally is an interesting indicator, reflecting the short-term disagreement between regional markets. While the US continues to lead the buying trend, Korean investors appear to be more cautious – at least for now.