From Premiums to Discounts: Bitcoins Wild Ride Splits Global Markets

In the past week, the crypto market has been buzzing with action, with bitcoin smashing its way to a new all-time high of $99,800 per coin on Thursday. Data reveals an intriguing dynamic during this period: while the Coinbase premium climbed, South Korea experienced a discount in BTC prices, reflecting a unique local discount.

U.S. Investors Push Premiums, South Korea Offers BTC Bargains

This week has seen a whirlwind of crypto activity, with billions of dollars worth of digital assets changing hands. On Nov. 21, 2024, bitcoin (BTC) soared to a peak of $99,800. However, by Sunday afternoon, BTC slid to $95,796, marking a notable dip. During this volatile period, cryptocurrency derivatives worth $472.69 million were wiped out, impacting 186,320 traders.

According to data from cryptoquant.com, the Coinbase premium index has been showing a positive premium since Nov. 3. This trend often points to strong buying interest among U.S. investors, typically fueled by institutional participation. Additionally, a premium can hint at large-scale investors (whales) snapping up BTC despite its elevated prices. Meanwhile, the Korea Premium Index (KPI), also known as the “Kimchi Premium,” has been running at a discount since Nov. 20, a day before BTC reached its record high. By Nov. 22, the KPI reflected a 0.85% discount.

A negative KPI signals that cryptocurrencies are selling for less on South Korean exchanges, suggesting lower demand or heightened selling activity from local traders. At 3:45 p.m. Eastern Time on Sunday, BTC was trading at $96,776 globally, while on South Koreas Upbit exchange, it was priced at $95,125 per coin. This put BTC in South Korea at roughly a 1.7% discount compared to the international rate.

Two distinct trends have emerged during this period, highlighting contrasting regional attitudes toward bitcoin as it explores new price highs. On one hand, U.S. investors appear to be fueling demand, while on the other, South Korean traders seem to be offloading their holdings or showing a waning interest, which is driving down local prices. These shifting dynamics reveal how regional factors can shape the global crypto market in intricate and unexpected ways during price discovery. By 5:10 p.m. Eastern Time in the U.S., BTC managed to climb to $97,376 per coin and on Upbit it was $96,241.