Bitcoin price premiums have resurfaced amid the recent market rally.

Kimchi premium

Data shows BTC trading at a $4,000 premium in South Korea compared to other markets. As of press time, Bitcoin was priced at $66,893 on Binance, while South Korean exchanges like Upbit, Coinone, and Bithumb listed it around $70,000.

Bitcoin Kimchi

Bitcoin price on South Korean exchanges. (Source: Coinpan)

This premium trend also affects Ethereum, the second-largest cryptocurrency by market cap. ETH is priced around $3,900 on Korean platforms, while it trades for about $3,600 on other exchanges.

Kimchi price

Ethereum price on Korean exchanges. (Source: Coinpan)

The Kimchi premium occurs when a digital asset’s price is significantly higher on South Korean exchanges than in US or European markets, creating arbitrage opportunities for traders with access to both markets.

Typically seen as a bullish sign, the Kimchi premium suggests increased buyer activity in the Korean market, reflecting strong engagement with digital assets in South Korea.

CryptoQuant CEO Ki Young Ju recently noted strong institutional demand for BTC in Korea, highlighting adoption among older demographics on platforms like Upbit.

While the current premium resurgence isn’t unprecedented, it echoes past occurrences, notably during bullish cycles such as in 2021 when BTC commanded significantly higher prices on South Korean exchanges than on Coinbase and other major platforms.

CME premium

Additionally, several market observers have noted BTC trading at a premium of over $69,000 on the Chicago Mercantile Exchange (CME) futures, a new all-time high.

They explained that this indicates traders are willing to pay a premium on CME because they believe BTC's price will continue to rise.

On-chain analytics platform CoinGlass data shows CME’s BTC open interest hit a record high of nearly $10 billion recently, while the overall open interest on the leading asset reached a record $32.36 billion.