according to Data From Cryptoquant, Kimchi Premium Bitcoin (BTC) increased to the highest level in three years of 12 %. This rise comes amid a sharp decrease in the leading cryptocurrency, resulting from concerns about the economic impact The United States’ commercial tariff, which waves on the horizon in Canada, Mexico and China.
Kimchi Premium rises to the highest level in 3 years, what does he pay?
Starting February 4, US President Donald Trump is scheduled to impose a 25 % tariff on Canada and Mexico, while China will face an additional tariff of 10 % at the top of the current fees. In response, the encryption market witnessed a sharp decrease, as the total market value decreased from 3.7 trillion dollars on January 30 to $ 3.1 trillion at the time of this report.
In the midst of this market drop, Kimchi Premium has increased from Bitcoin to the highest level of three years. Usually, the Kimchi premium increases when the demand for BTC rises dramatically in South Korea. However, this time, the increase occurs during the period of bitcoin decrease instead of the upward trend, indicating other basic market forces in playing.
in mail In X, CEPTOTOANT KI Young JU highlighted that the current Kimchi premium is not due to the increased demand for BTC. Clear:
Check the graph again. The Kimchi premium has risen at the local bottom – not because the Koreans buy the decline, but because BTC is converted into US dollars. A few Koreans turn BTC into KRW. Other countries are likely to see a similar trend.
Continuous trade tensions may lead this trend. Customs duties in the United States are expected to enter the US dollar (USD) against other currencies, making it a more attractive store during economic uncertainty. As a result, South Korean investors may turn BTC to the US dollar instead of Korean victory (KRW).
Where is Bitcoin heading after that?
Over the past 24 hours, more than two billion dollars have occurred in the encryption qualifiers, although the vast majority are long sites. The liquidation volume exceeds this scenes during the main crash events such as March 2020 Covid market decrease and FTX collapse In November 2022.
While the American customs tariff applies tomorrow, Trump It is said He is still in talks with Canadian Prime Minister Justin Trudeau, optimism that it can be reviewed or delayed commercial fees. If the definitions are canceled, the encryption market may restore some recent losses.
However, to keep its bullish structure and pay towards the highest new level ever (ATH), Bitcoin should recover the price of $ 105,000. Some analysts, however, Predispay BTC may need to re -test 76,000 dollars before resuming its upward path. At the time of the press, BTC is trading at $ 96,864, a decrease of 2.2 % in the past 24 hours.
Distinctive image from Unsplash.com, plans from Cryptoquant and TradingView.com
