Bitcoin in South Korea breaks through $4,000, with a premium of 44%. ETH and ETC also surge in premium

A surge in demand for bitcoin in South Korea is causing the cryptocurrency to trade at a 44% premium locally.

Bitcoin in South Korea

As Bitcoin soars, some countries seem more excited than others. The most notable is Japan, which recently recognized Bitcoin as a legal payment method. Bitcoin is becoming more and more popular in Japan, and the volume of Bitcoin transactions is also setting new records.

However, another country that has come into people’s attention is South Korea - the country’s Bitcoin market is also experiencing rapid growth.

The demand for Bitcoin in South Korea is so strong that Bitcoin is now trading at a 44% premium to the U.S. dollar in the country. The local Bitcoin price is currently at 4,311,720 won, or about $3,860, and has reached a high of $4,246. Not only that, the premium for Bitcoin in Japan has also reached 16%, making investors more optimistic about the virtual currency.

In the past period of time, the volume of Bitcoin Korean won transactions has continued to rise, and it is currently ranked fourth, behind Bitcoin RMB transactions. In the past 24 hours, the BTC/KRW transaction volume on Bitcoin exchanges exceeded $234 million, which is a pretty amazing number.

Political unrest

So why is there a surge in demand for Bitcoin in South Korea? Despite being a Bitcoin-friendly place with multiple exchanges and a handful of BTMs, there hasn’t been any major positive news in the country regarding Bitcoin regulation or infrastructure recently.

However, the political environment in South Korea is in an uncertain state. As we have experienced before, Bitcoin thrives in times of political and economic uncertainty, and its decentralized nature makes it a safe haven, making it completely independent of any regulation and control from any government or entity.

Sandy Liang, head of operations at Bikan, told Bitcoinist:

“One possible explanation for this could be the tensions between South Korea and North Korea. Perhaps this is what is causing South Koreans to consider Bitcoin as a reserve currency in case of unexpected events.”

In the face of potential conflict, it is normal for many people to want to protect their savings, as historically national currencies can quickly depreciate in these situations.

Ethereum in South Korea

In South Korea, it’s not just Bitcoin that’s gaining attention. Ethereum is also gaining popularity in the country, with ETH/KRW trading now accounting for 30% of the total global ETH trading volume, making it the second-largest trading pair after Bitcoin.

Much like Bitcoin, ETH’s Korean Won price premium over its USD price is also very significant, with the current ETH trading price in South Korea at 348,515 KRW, over $311, a premium of more than 50%, demonstrating the huge demand for altcoins in South Korea.

What’s even more striking is that South Korea’s ETH trading volume has even surpassed Bitcoin trading volume. In the past 24 hours, ETH Korean won trading volume exceeded 465 billion won (about $415 million), exceeding Bitcoin trading volume in the same period (266 billion won, about $237 million).

After South Korea's largest exchange Bithumb added support for ETC transactions, ETC also became popular in South Korea, with daily trading volume approaching ETH, reaching 429 billion won (about US$383 million).