Despite Bitcoin’s surge past $70,000, interest among South Korean retail investors remained tepid. The kimchi premium, which measures the difference between Bitcoin’s price in South Korea and global exchanges, is low. While Bitcoin rallies globally, the Korea Premium Index has turned negative.
The kimchi premium has changed in recent months, reaching a high of around 10% in March due to strong demand from Korean investors. Now, it is below 2%, showing a drop in retail interest.
Korea Premium Index Signals Market Shift
The Korea Premium Index, which can be positive or negative, indicates a shift in the South Korean market. While Bitcoin is trading around $71,300 globally, the Index has fallen to almost 1% lows.
This negative premium, indicated by a red circle on recent charts, suggests that Bitcoin is trading at a discount on South Korean exchanges. Analysts attribute this to lower local demand and possible capital restrictions.
U.S. Institutional Demand Rises as Whale Holdings Expand
As South Korean demand remains subdued, institutional interest in Bitcoin is gaining traction in other markets, notably the United States. As noted by Ki Young Ju, custodial wallets reveal that institutional demand has doubled that of retail.
Read also: Bitcoin Kimchi Premium Collapses as Korean Crypto Market Cools
#Bitcoin institutional demand in custodial wallets is rising.
Over the past year, 278K BTC flowed into U.S. spot ETFs (80% retail) vs. 670K BTC into whale wallets (1K+ BTC, excluding exchanges/mining pools).
In custodial wallets, institutional demand is twice that of retail. pic.twitter.com/OsxS7x3kEL
— Ki Young Ju (@ki_young_ju) October 29, 2024
Over the past year, U.S. spot ETFs have received 278,000 BTC in inflows, with retail investors accounting for 80% of this volume. Meanwhile, 670,000 BTC have moved into whale wallets, which hold between 1,000 and 10,000 BTC each.
The continued growth in whale holdings, which topped in 2023 and 2024, coincides with Bitcoin’s price increase, which signals confidence among large investors in Bitcoin’s long-term potential.
As of press time, Bitcoin’s price climbed to $71,075.95, reflecting an increase of 4.86% over the past day. With a trading volume of $46.99 billion, the asset’s market cap reached $1.41 trillion over the past 24 hours.
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