Short-term top signal or a reset for Bitcoin?

The so-called kimchi premium, which measures the premium against the price of bitcoin (BTC) on the South Korean cryptocurrency exchange, fell overnight.

Register now on Binance, add 50$ and get 100$ bonus voucher!

The bonus fell on the 7th. April from 22% to 15% in a few hours and continues to fall on the major South Korean exchanges.

BTC Korea Premium Index. Source CryptoQuant

Major downturn in South Korean bitcoin market

As noted by CryptoQuant CEO Ki Young Ju, the price of bitcoin fell notably overnight on South Korean exchanges.

With the drop in bitcoin price, the premium for kimchi has also dropped. But when the price of BTC on South Korean exchanges fell much more sharply, the premium dropped rapidly within hours.

Bitcoin falls sharply on South Korean exchanges. Source: Ki-Young Ju

There are two possible reasons why the premium has fallen so much.

First, traders outside South Korea could find a way to successfully arbitrage the premium. One possibility is that traders from other Asian markets are coordinating with South Korean Whales to sell and exit BTC on the same day.

Secondly, the violas, which got bigger as the week went on, were heavily tuned. As capital left the altcoin market, traders were able to sell BTC and ETH as well, reducing high-capacity cryptocurrencies.

Kee said:

Register now on Binance, add 50$ and get 100$ bonus voucher!

Looks like someone finally figured out how to raise the kimchi premium. The 30-minute trading volume on @upbitglobal, Korea’s largest exchange, was higher than @Binance. This decline seems to be related to the departure of kimchi. An evidence of arbitration: @BithumbOfficial, one of the largest exchanges in Korea, average $BTC inflows are rising while inflows from all exchanges are falling. It seems that some whales are dumping BTC on Korean exchanges.

XRP, for example, has consistently been one of the most popular cryptocurrencies on the South Korean market over the past week.

As reported by Cointelegraph, XRP rose on bitcoin and broke above $1 for the first time in three years.

But with altcoins like XRP having fallen, it’s possible that market sentiment around Bitcoin and Ethereum has also deteriorated in the Asian market, leading to lower premiums.

Is this the best signal?

When Kimchi’s premium dropped significantly in 2017, the price of bitcoin dropped more than 50% in a matter of days.

This time, the price of bitcoin fell 5% to $56,000 and then began to recover fairly quickly.

The likelihood of a short-term rally in the cryptocurrency market remains high, given the large liquidations that have taken place over the past 48 hours.

For example, a transaction with XLM resulted in a liquidation of $84 million. With more than $1 billion liquidated in the past 24 hours, the crypto derivatives market is likely to reboot.

BTC funding rate. Source: Bybt.com.

Bitcoin’s cover price on the major futures markets was about 0.15 percent before the drop. This is 15 times the standard value of 0.01%, indicating that the futures market was extremely overheated.

However, as the chart above shows, refinancing rates remain relatively high, suggesting that the price could fall further in the short term.

Related Tags:

bitcoinis bitcoin safebitcoin news todayhow much are bitcoins worth,People also search for,Privacy settings,How Search works,bitcoin,is bitcoin safe,bitcoin news today,how much are bitcoins worth

Register now on Binance, add 50$ and get 100$ bonus voucher!

Recent Articles

Tonga accepts Bitcoin donations amid tsunami onslaught

A small island of Tonga has been hit by a tsunami, and the country is calling for donations in Bitcoin. The nation’s Prime Minister...

How to Buy Solana (SOL) in India

It is important to know how you can buy SOL in India. It’s no secret that the Indian market has only recently begun to...

How to Buy Flow (FLOW) in India

Flow is a cryptocurrency that was introduced in June 2018. It uses the Ethereum blockchain platform, but has its own built-in digital currency called...

Moonbeam Goes Live on Polkadot, Becomes its First Fully Operational Parachain

Moonbeam, the world’s first fully operational on chain scaling solution was released into the wild this week. The Polkadot-powered platform aims to provide scalability...

Stacks ecosystem becomes #1 Web3 project on Bitcoin

The Ethereum blockchain, which powers the Stacks ecosystem’s token STX, has become the most important web3 project on Bitcoin. The announcement is a sign...

Related Stories