Bitcoin's reverse premium in South Korea fell to its lowest level in approximately 5 years 4 months, with Tether's reverse premium also recording approximately -3.8%. As of 10 AM on the 2nd, Bitcoin's domestic won price of 103.59 million won traded approximately 3.94% below the global price of $71,089 (approximately 107.67 million won), according to KIMPGA data. The reverse premium, which measures the percentage by which domestic digital asset prices in won fall below dollar-denominated global prices, indicates decreased domestic investment demand when negative.
Bitcoin Trades 3.94% Below Global Price
As of 10 AM on the 2nd, Bitcoin's won price stood at 103.59 million won based on KIMPGA data. At the same time, the global price of $71,089 (approximately 107.67 million won) showed domestic prices trading approximately 3.94% lower than global prices. The reverse premium represents the degree to which domestic digital asset prices denominated in won fall below dollar-denominated global digital asset prices, expressed as a percentage.
Lowest Reverse Premium Since February 9, 2021
Based on CryptoQuant data, Bitcoin's reverse premium reaching this level represents the lowest point since February 9, 2021 (UTC), when it recorded -6.5%. This marks approximately 5 years 4 months since the reverse premium fell to comparable levels.
Tether Reverse Premium Reaches -3.78%
The reverse premium also appeared in USDT. At the same time, USDT's won price traded at 1,456 won. This amount is approximately 3.78% lower than the global reference price of 1,512 won. This price falls below the current won-dollar exchange rate of 1,512 won.
Typically, when domestic investors' digital asset buying demand is strong, domestic digital asset prices form higher than overseas prices. Conversely, when domestic digital asset prices are lower than global digital asset prices as seen now, it is viewed as decreased domestic digital asset investment demand.
FAQ
What is Bitcoin's reverse premium in South Korea as of the 2nd?
As of 10 AM on the 2nd, Bitcoin's reverse premium in South Korea reached approximately -3.94%, with the domestic won price of 103.59 million won trading below the global price of $71,089 (approximately 107.67 million won) according to KIMPGA data.
When was the last time Bitcoin's reverse premium was this low?
Based on CryptoQuant data, Bitcoin's reverse premium last reached comparable levels on February 9, 2021 (UTC), when it recorded -6.5%, marking approximately 5 years 4 months since such low levels.
What does a negative reverse premium indicate about the Korean crypto market?
When domestic digital asset prices are lower than global prices, it is viewed as decreased domestic digital asset investment demand, as domestic prices typically form higher than overseas prices when local buying demand is strong.
