South Korea’s Bitcoin Price Sees Deepest Drop in 2025, Trading Nearly 2.2% Below Global Average

While the global Bitcoin (BTC) price has fluctuated between $117,502 and $118,781 in the past 24 hours, the South Korean cryptocurrency market is seeing its steepest discount since early 2025. The drop marks the 12th consecutive day that the East Asian country’s BTC price has been significantly below the global average, an unusual phenomenon for a market that typically sees premiums.

Widening Price Gap in South Korea

According to data compiled from platforms such as CryptoQuant and CoinMarketCap, BTC was listed at a global average of $118,189 on the afternoon of July 20, 2025. Meanwhile, on Upbit – the largest trading platform in South Korea – at the same time, the coin was only trading at $115,620, a difference of $2,569, equivalent to 2.18%. This is the deepest discount recorded this year, surpassing the 2% drop that occurred on July 11 and 16.

Compared to the usual trend, such a negative price difference is rare in South Korea. Since the end of 2024, the South Korean market has mainly recorded a premium, in which the BTC price is often higher than the global average, reflecting strong demand from domestic investors. However, since July 8, the trend has reversed. The fact that the BTC price on the domestic exchange has been lower than the world price for nearly two consecutive weeks is a notable signal, showing that market sentiment is changing.

Possible Causes of Domestic Sentiment and Policy

South Korea’s sudden sharp discount on Bitcoin may reflect several internal factors. With the international market holding steady around $118,000, the decline in BTC prices in South Korea may be related to:

Weak investor sentiment due to concerns about new government regulations regarding digital assets.

Lower domestic liquidity due to short-term capital outflows from the market, shifting to traditional or defensive investment channels.

Selling pressure from domestic investors amid macroeconomic instability, causing insufficient demand to maintain prices close to global levels.

This apparent divergence shows that Bitcoin’s value, despite being global, is still driven by regional characteristics such as trading volume, financial regulations, and inflows/outflows from domestic exchanges.

Historical Comparison and Future Outlook

Prior to this sharp drop, the largest discount ever recorded in South Korea was on December 7, 2024, when BTC was trading 2.42% below the global average. While the current discount has not broken this record, its persistence for more than 10 days raises many questions about the medium-term trend of the market.

In the past, when large and prolonged discounts appeared, the South Korean market often had a breakthrough recovery as demand returned. However, if this situation continues without external psychological support or policy factors, the domestic market may continue to be decoupled from global growth.

Conclusion

The fact that Bitcoin prices in South Korea are currently nearly 2.2% below the international level is a remarkable phenomenon, reflecting fluctuations in investor sentiment and regional liquidity conditions. As this misalignment persists, it not only creates opportunities for arbitrage but also forces investors and policymakers to closely monitor developments to reassess the dynamics of the country’s cryptocurrency market.