Oh boy, South Korea's political scene is buzzing like a beehive on a sunny day! In the past month alone, the South Korean parliament has given the boot to their president and is now eyeing the prime minister for a similar fate. With all this political hullabaloo, the country's financial market is feeling the heat. The South Korean won has taken a nosedive to its lowest point against the US dollar since way back in 2009.
Now, here’s where it gets really interesting. This currency tumble is shaking things up in the crypto world, specifically with the Bitcoin Kimchi Premium. If you’re scratching your head wondering what that is, it’s the difference in Bitcoin prices between South Korea and the rest of the world. According to CryptoQuant, South Korean buyers are shelling out about 3% more for their Bitcoin fix.
Jeff Park from Bitwise shared some juicy details on the situation. Turns out, the lawmakers are on a roll and have recently pushed to impeach the Prime Minister and interim president, Han Duck-soo. This comes hot on the heels of President Yoon Suk-yeol’s impeachment. Yoon, who has been at the helm since May 2022, found himself in hot water after attempting to impose martial law to fend off supposed “anti-state” forces. Martial law is like handing the keys over to the military and taking away some civil liberties – not a popular move, apparently.
Park warns that the political drama unfolding in South Korea is a cautionary tale for democracies everywhere. With impeachment being wielded as a political weapon and whispers of foreign meddling in elections, it's a reminder that democracy can be as fragile as a soap bubble.
The news of the acting president's impeachment sent the won spiraling downwards. In South Korea, crypto prices are often higher than international rates, thanks to strict local regulations. For example, Bitcoin was trading at a whopping 144,450,000 won ($98,000) on Upbit, while it was just $95,100 on Coinbase.
Historically, a bump in the Bitcoin Kimchi Premium signals a bullish trend in South Korea's crypto markets. Despite the widening price gap, local investors are diving into dollar-based assets like Bitcoin, seeking refuge from the won's downturn. It's like a crypto safety blanket in these turbulent times!
