It is a known fact in the crypto market that the leading digital asset, Bitcoin, has always affected the way other digital assets trade. Some months ago, the digital asset saw a sporadic rise in the market and led the other coins to take on a bullish run.
While traders and investors have backed the coin to make a massive rise in the market, the digital asset has continued to fall. For some days now, Bitcoin has been falling after touching its resistance at $59,000, pushing the asset into the bearish zone. With that, the digital asset has seen a fall to trade around $57,000, losing 2.7% in the last 24 hours.
Bitcoin presently in bearish waters
In that same vein, the drop in the price of the digital asset has grossly affected the movement of its higher prices Kimchi Premium that goes on sale in Korea. According to the latest news going around, the asset has dipped critically following the drastic fall in the price of Bitcoin.
Before now, the Kimchi Premium held on to the above $70,000 zone as its support, but much cannot be said for the asset right now. The sale of the premium was said to have gone on sale in Korea following the massive amount of demand from traders across the country. Presently, the Kimchi Premium is now seeing declines and is now moving towards the same price that Bitcoin is initially trading.
In the words of the CEO of CryptoQuant, Ki-Young Ju, he pointed out that he feels like an entity has finally seen a way to Arbitrage the opportunity that the Kimchi Premium possesses. He pointed out that when looked at the trading volume of the asset on Upbit, it was miles ahead of that of Binance in the last 30 mins.
Kimchi Premium now trading at $66,000
In a lame man term, Arbitrage means that a situation where traders buy an asset (in this case, digital asset) at a position where it is selling for a lower price and sells when it is selling for a higher price. This means that most traders would need to buy their Bitcoin outside the country and sell them inside the country.
This method has been seen as the integral method to balance the demand and supply of the asset and also helps to relate prices between different exchanges together. In the data that was obtained from Ki-Young Ju’s firm, CryptoQuant, the premium saw a slight decline this morning as it presently traded at around 11% from the previous level of 20%. Presently, the premium is trading at 14%, and the Kimchi Premium is now trading in a region around $66,000.