South Korea's Bitcoin Kimchi Premium returns

The Kimchi Premium has returned in South Korea as retail investors buy bitcoin again. CoinGecko data shows bitcoin trading nearly 1% higher on Upbit, Korea's biggest exchange, than on Binance. Prices have historically been higher in South Korea because of strong local retail demand. Strict capital controls also contribute to the higher prices. Trading regulations also contribute to the higher prices. The Bitcoin/won trading pair is more common in South Korea than the Bitcoin/U.S. dollar pair is elsewhere. The premium has been described as a retail FOMO indicator. The premium reached as high as 21.5% in 2022. Bitcoin recently traded at $78,287. Bitcoin was unmoved over the past 24 hours. Bitcoin was also at the same price as seven days ago. Bitcoin has rallied 24% over the past month. The U.S. Treasury said in August that it would at least double the size of its liquidity-support buyback operations. The announcement hurt the dollar. Non-yielding assets such as bitcoin and gold benefited. President Donald Trump said the Clarity Act was an important piece of legislation. Trump urged lawmakers to pass it. Crypto industry leaders have called for rules that distinguish digital assets as securities, commodities, or payment stablecoins. News that regulators will soon have such a framework has typically benefited crypto markets. Speculators are betting on Polymarket that bitcoin has a 59% chance of being above $82,500 this month. The betting has led some to call an end to the bear market.