South Korea’s to Asia’s as Kimchi Premium Turns Bullish

South Korea’s won has experienced a significant drop, falling nearly 2.5% against the US dollar this year, making it the worst-performing currency in Asia

ContentsWeakening Won Struggles Against the DollarThe Kimchi Premium: A Bullish Indicator for BitcoinA Bullish Setup as Premium Stays in the Mid-RangeThis decline has triggered concerns as money moves out of local markets into overseas assets. At the same time, the kimchi premium—the price difference between Bitcoin in Korean exchanges and global markets—has been showing signs of bullish activity, rising to 2.49%.

Weakening Won Struggles Against the Dollar

The USD/KRW pair has been trading around 1,472.8, with the Korean won continuing its downward trend. This puts the currency dangerously close to local highs, signaling further pressure on the won

While the South Korean currency is suffering, many other Asia-Pacific currencies have shown more stability or slight gains. For example, the Singapore dollar is at 1.285, the Chinese yuan is at 6.963, and the Indian rupee sits at 90.819. Meanwhile, the Australian dollar and Thai baht have both seen slight improvements against the dollar.

The Kimchi Premium: A Bullish Indicator for Bitcoin

Despite the won’s struggles, Bitcoin prices in South Korea have been rising, driven by an increase in the kimchi premium. The premium, which tracks the price difference of Bitcoin on Korean exchanges like Bithumb compared to global ones like Binance, currently sits at 2.49%

This premium signifies that Bitcoin is trading at a higher price in Korea than in other countries, a pattern that usually suggests increased demand from Korean traders. The kimchi premium peaked at 6.07% in the past year, often marking a time when aggressive buying in Korea was pushing the market.

Source: TradingView

When the kimchi premium crosses 1.5%, it typically aligns with Bitcoin’s upward price trend, even during periods when global prices weren’t particularly rallying. Historical data suggests that when the premium is high, it often correlates with Bitcoin breaking key resistance levels. The current resistance level for Bitcoin is around $28,754.40, while strong support lies at $25,200. This support level is where the highest buy volume spike occurred, coinciding with the rise in Korea’s kimchi premium.

A Bullish Setup as Premium Stays in the Mid-Range

At 2.49%, the kimchi premium is within its historical range. While not excessively high, it remains strong enough to maintain a bullish outlook for Bitcoin’s price movement. If the premium climbs back to 4% or 6%, it could trigger another price surge. However, a drop below 1% would indicate weakening demand from Korea, which might lead to a price dip and a possible revisit of the $18,000 range.

The South Korean won’s struggles continue to make it the worst performer in Asia, as money moves abroad in search of stability. On the other hand, the kimchi premium remains a key indicator for Bitcoin’s price in Korea. While the premium is still within a healthy range, a further increase could fuel another bullish push for Bitcoin. Investors should watch the premium closely for signs of market strength or weakening demand in the coming weeks.