South Korea Kimchi Premium Hits 2-Year High – Leverage SBF To Make $Million A Day

South Korea Kimchi Premium Hits 2-Year High – Leverage SBF To Make $Million A Day

The post South Korea Kimchi Premium Hits 2-Year High – Leverage SBF To Make $Million A Day appeared first on Coinpedia Fintech News

South Korea’s Kimchi Premium for Bitcoin hit a 27-month high at 10.32% on Wednesday. Following a momentary dip to $60,000, Bitcoin bounced back, rising 4% in the last 24 hours and surpassing $66,800.

Meanwhile, with the help of this Kimchi Premium, notable figure Sam Bankman-Fried, the bankrupt FTX CEO claimed to have made up to a million dollars a day leveraging this premium.

Kimchi Premium Jumps 10%

CryptoQuant CEO Ki Young Ju recently shared on X that Bitcoin’s price premium in South Korea has surged to an impressive 10%, hitting its highest point in two years. Ju highlights the comeback of Korean retail investors in the crypto market, signaling renewed interest and confidence among local traders.

The Kimchi premium represents the price difference in cryptocurrency assets between South Korean exchanges and those on the international market. This premium has been on the rise since the start of February, mirroring the upward trajectory of BTC’s price.

As per the report the Korea Premium index climbed from 5.19 on February 28 to 6.84 on March 5. This coincided with Bitcoin’s surge to a new all-time high, surpassing $69,200 on March 5, fueled by ongoing investments in Bitcoin ETFs in the United States.

Also read: Bitcoin Price Might Drop To This Level Before Hitting ATH – Predicts Michael Novogratz

SBF $Million Profit!

During the 2021 bull run, the Kimchi Premium peaked at 21.56% on May 19, aligning with Bitcoin’s price exceeding $36,000 before eventually reaching its previous all-time high in November 2021.

However, despite these gains, strict capital controls in Korea make it challenging for foreigners to capitalize on the premium.

An intriguing historical example is Sam Bankman-Fried, the founder of the now-bankrupt Alameda Research and FTX exchange. Bankman-Fried claimed that the premium reached as high as 50% during 2019 and 2020, enabling his firm to generate up to a million dollars a day.

South Korea Eyes For Bitcoin ETF

While the United States sees a surge in Bitcoin ETFs, South Korea is yet to embrace these financial instruments, leaving retail spot buying as the primary driver of local prices. 

As per the coinpedia report Lee Bok-hyun, the governor of the Financial Supervisory Service, recently hinted at potential developments, stating that authorities are engaged in discussions regarding the legalization of Bitcoin Spot ETFs in the country. 

However, the outcome of these discussions could significantly shape the landscape for Bitcoin in South Korea, potentially ushering in a new era of institutional participation.