Bitcoin Sees First Discount in South Korea in 4 Months Amid Trump’s Trade Turmoil
Bitcoin’s valuation in South Korea took an interesting turn last week, dipping into a discount amidst the dramatic volatility rocking global financial systems. This marked the first instance of such a discount in nearly four months, breaking a streak where the country consistently observed a premium.
Trump’s Tariffs Spark Unusual Bitcoin Discount in South Korean Markets
Over the past two weeks, global markets were thrust into chaos following U.S. President Donald Trump’s announcement of extensive tariffs on imports entering the U.S., only for him to roll back some measures earlier last week. American equities endured days of turmoil until the rollback, unsettling international stock exchanges as apprehension spread across trading floors.
The last BTC discount in South Korea took place on Dec. 15, 2024.
Last week, the Korea Exchange (KRX) mirrored the global unease with a noticeable decline. The KOSPI index, a key benchmark, slid 1.3% over the course of the week, marking its third consecutive weekly drop. On Friday, it closed at 2,433 points, shedding 0.5% and erasing nearly 7% of gains from the prior session. This downturn has been significantly driven by escalating trade tensions between the U.S. and China.
This was coupled with sharp declines in heavyweight stocks like Samsung Electronics. Simultaneously, bitcoin ( BTC) faced its first discount in South Korea since Dec. 15, 2024, according to data from cryptoquant.com. Back then, the discount hovered around 0.37%, while a few weeks earlier, on Dec. 7, it had plummeted to 2.42%. Fast forward to April 9, amid Trump’s trade skirmishes, BTC traded at a 1.19% discount relative to the global average.
While BTC was trading for $85,355 per coin at 8 p.m. ET on Saturday evening, the price on Upbit was $87,061. Source: Coinmarketcap.com
The situation swiftly reversed as the discount narrowed, giving way to a 0.17% premium the very next day. By Friday, the premium had climbed to 0.29% above global prices, and on Saturday, it soared to a 2% advantage. Notably, BTC’s price settled more than $1,700 higher on Upbit on April 12, when it was exchanged in won. Furthermore, in terms of fiat currency transactions involving BTC, the Korean won ranks second in trading volume, trailing only the U.S. dollar, with stablecoins excluded from the tally.
