Price of Bitcoin reaches $ 4,000 in South Korea
Bitcoin is trading for more than $ 4.00 in South Korea, with an extra appreciation of 38.5%. Currently, the average price of bitcoin in the global market is $ 2,650.
On May 12, the price of bitcoin rose more than $ 2,070 in South Korea, when the overall average price of bitcoin was around $ 1,800. During this period, the South Korean bitcoin exchange market showed an extra 12.7% over other major markets such as the US, China and Japan.
Bitcoin is traded by exchanges in the South Korean market, with some of the largest bitcoin exchanges on the market, including Bithumb and Korbit consistently demonstrating a 5-10 percent difference between exchanges in the US and China. This limit has increased to 35% within 12 months, which is currently equivalent to $ 1,300.
Analysts suggest that there are arbitrage opportunities in the South Korean market because of their size. Due to their low turnover, limited number of investors and suppliers, analysts have stated that the market is easier to manipulate and leverage compared to other global markets.
However, investors and traders began to re-evaluate the high bitcoin price quotation on the South Korean bitcoin exchange market that surpassed the Japanese and European exchange markets to become the third largest bitcoin market in the world. With a daily trading volume of $ 229 million, analysts' earlier claims that South Korea was an easily manipulated market were not reasonably feasible for the high market price.
On May 23, bitcoin investor and editor-in-chief of Adamant Research magazine, Tuur Demeester, said the information director of South Korea's second largest stock exchange, Korbit, attributed the high price of bitcoin in the South Korean market - Money Laundering (AML) Policies.
"The chief information officer of South Korea's second-largest exchange market says capital controls are hampering price arbitrage," Demeester explained, stressing that taking advantage of the South Korean market exchange price of bitcoin is difficult.