Prizes for a notorious Bitcoin (BTC) trading popularized by Sam Bankman -Fred are popped back to significant levels in the middle of a market production caused by rising US customs, a market sign that some consider Bearish in the short term.
The so-called Kimchi prize or the difference in Bitcoin awards on Korean exchanges compared to Global Bourses rose just over 10% as Asian Morning Monday, when BTC fell 6% over the last 24 hours.
Arbitrage involves buying Bitcoin on a global exchange and selling it on a Korean exchange for a riskless profit in Korean won. The pocket of the actual gains is difficult due to South Korea’s strict capital control, but the prize is often used with other factors to measure market mood.
Commercial amounts of Korean exchanges Bithumb and Upbit have dropped significantly in the last week, indicating a decrease in retail activity. Meanwhile, the balance of dollar-marginated stableecoin-tether has been on a decline in both exchanges with occurrences of withdrawal delays.
“It seems that most retail investors are either already fully invested in state or have withdrawn their funds to participate in DEX activities,” Seoul-based DNTV research analyst Bradley Park told Coindesk in a Telegram message.
“In this situation, the Kimchi prize does not represent the overbuying of the retail investors; Rather, it seems to have risen as a passive reaction to the uncertainty in a strong dollar environment, ”Park added.
“The Kimchi prize can wave too much when trading volume rises, but it can also help defend prices when asset prices on overseas exchanges fall significantly,” Park said, adding that it was probably “not a positive sign” of short-lived for Bitcoin.
