78 million won… 12 million won over overseas ↑
World cryptocurrency market cap exceeded 2 trillion won
As the so-called’kimchi premium’, which is higher than the domestic price of bitcoin, is getting bigger and bigger, there are warnings that the market has overheated.
On the 6th at 2 pm on the cryptocurrency exchange Upbit, bitcoin was traded for 7852 million won. At the same time, the price was 18.9% (1,251 million won) higher than the price of 58775 dollars (about 66.1 million won) formed at Coinbase, the largest exchange in the United States. Kimchi premium, which was below 10% last week, has swelled to a level approaching 20%.
The increase in kimchi premium means that domestic investors’ buying trend is particularly strong. The industry usually sees this number above 5% as a sign of overheating. In early 2018, when the’coin craze’ was at its peak, the kimchi premium rose to 50-60% and then collapsed to 0% in one month. When transactions are sluggish, the’reverse kimchi premium’, which is relatively cheap in domestic prices, may appear.
According to CoinMarketCap, Upbit’s daily trading value is estimated at 18 trillion won. On the same day, it surpassed the trading value of the stock market (13,4978 billion won). Recently, this has become more frequent, analysts say, because more and more people are looking to invest in coins with high risk and high returns as the stock market slows down.
Various prospects are emerging as to how long the uptrend of bitcoin, which is more than twice as expensive this year, will continue. At Upbit, Bitcoin rose to 79.5 million won at 9:40 am on the day, and approached 80 million won.
According to the cryptocurrency company CoinGecko, the combined market cap of all cryptocurrencies reached $2.2 trillion (about 2280 trillion won) on this day. More than 50% of the market capitalization is occupied by’bigger stock’ bitcoin. Bloomberg News analyzed that “in the era of ultra-low interest rates, the number of institutional investors expecting high returns and working with cryptocurrencies has increased.”
Reporter Lim Hyun-woo [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution