A South Korean cryptocurrency analyst has forecasted that the growth in Bitcoin prices may persist, attributing it to the gradual rise of “crypto fever” in the nation.
As reported by Hanguk Kyungjae, industry experts in South Korea generally agree on the ongoing upward trajectory of Bitcoin (BTC) prices. According to the media outlet, these analysts anticipate that the coin will maintain its upward momentum for the foreseeable future. However, they also caution that a short-term price adjustment may be imminent.
Bitcoin Price Growth: Potential for Further Rises?
The CEO of CryptoQuant, Ju Ki-young, was cited by the media outlet, stating, “If the market’s maximum degree of overheating is 100, we are currently at around 50.”
Despite this assessment, Ju highlighted that retail investors are exercising caution. The memories of unfortunate crypto investments during the end of the previous Bitcoin bull markets, which were widely covered by South Korean media in 2018 and 2022, still linger.
Consequently, many potential investors are undecided about re-entering the markets. Nonetheless, there has been a notable return of retail investors, evidenced by the increasing kimchi premium rates.
The kimchi premium refers to the tendency for retail investment surges within a limited number of domestic cryptocurrency exchanges to drive demand higher than the available supply. Consequently, South Korean investors end up paying more per unit of cryptocurrency compared to investors in other regions worldwide.
According to Cryprice calculations, the Bitcoin kimchi premium decreased from a peak of 10% earlier this month to just under the 8% mark on March 13th. This implies that the price per BTC in South Korea currently stands over $6,070 higher than on international cryptocurrency trading platforms like Binance.
Kimchi Premium: Still a Long Way to Go Before Fever Pitch?
The current kimchi premium rates of 7-10% are notably lower compared to the 20-30% markups observed during previous bull runs in South Korea. This suggests that some individuals remain hesitant to re-enter a market that has previously caused significant losses. Ju elaborated on this sentiment, stating, “We are not in a situation where everyone is jumping into crypto investment.”
While acknowledging the challenges of pinpointing an exact price ceiling for BTC, Ju expressed expectations of Bitcoin price growth testing the $114,000 mark. He emphasized, “We are in the middle of a bull market, and there is the potential for further rises in the future.”
Social Media Post Captures Mood in South Korea?
In a notable social media moment, South Korean comedian Kim Kyung-jin seemed to capture the sentiments of many retail investors.
On March 11, Kim shared a graph on his Instagram page depicting the price of Bitcoin surpassing the 100 million won ($76,000) threshold on a South Korean exchange price chart. He pondered, “Bitcoin is supposed to be a scam. So why are prices rising like this?”
Adding to the humor, comedian Park Jun-hyung jokingly inquired about Kim’s own Bitcoin holdings. In response to various comments, Kim expressed feelings of regret and frustration, presumably for not having invested in the cryptocurrency.
