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Over the past seven days, the cryptocurrency market has grown from $ 324 billion to $ 385 billion, the price of bitcoin has gone from $ 8,000 to $ 8,800 and other major cryptocurrencies also recorded gains of the order of 10 to 20%.
The premium of South Korea is back
Until last week, the price of cryptocurrencies, including Bitcoin, Ethereum and Ripple, was cheaper in South Korea than in other markets such as the United States, Japan and Hong Kong. Lower rates of cryptocurrency on the local South Korean market and crypto-currency exchanges such as Bithumb and Korbit were considered strange, as the value of cryptocurrency was generally higher in South Korea. in the range of 5 to 30%.
In South Korea, cryptocurrencies tend to be more expensive than other regions because of their low supply. The country has relied on miners in China and Japan to introduce cryptocurrencies, but its ban on foreign cryptocurrency traders has led to even lower drops in the supply of bitcoin and gold. other major cryptocurrencies. As a result, cryptocurrency premiums intensified throughout 2017 and 2018.
Given these events and factors, analysts found that lower cryptocurrency rates in South Korea were abnormal and constituted a strong indicator of a bear market. Investors were more interested in investing in the cryptocurrency market, even with a lower rate. In December 2017, when FOMO or the fear of missing South Korea went bankrupt, investors were ready to invest in the market with premiums of 30 to 40%. As a result, when the bitcoin price reached $ 20,000 globally in South Korea, bitcoin was worth $ 25,000
The reappearance of premium rates on the South Korean cryptocurrency market means an increase in the demand for cryptocurrency on the local market. Investors have become more confident in the market's ability to recover and in the short-term performance of major and minor cryptocurrencies.
At the time of the report, on Bithumb, the country's largest cryptocurrency exchange, bitcoin traded at $ 8,975, more than $ 1,000 more than the overall price of $ 8,870 . While the current premium on the South Korean cryptocurrency market is not necessarily large, the mere fact that premiums in South Korea have reappeared shows investors' optimism towards the market.
Playing Tokens Exceptionally Good
ERC20 tokens based on the Ethereum, including Storm, Aion, Zilliqa, 0x, WanChain, and ICON, have performed particularly well against bitcoin, which has also recorded significant gains over the past decade. last week. Since April 16, in a week, the price of bitcoin has increased by more than 10%.
Traders have become more comfortable taking risks by allocating their funds in cryptocurrency outside major currencies like Bitcoin and Ethereum. Tokens like Zilliqa, Storm and 0x, for example, increased by more than 20% compared to bitcoin last week, which would represent an increase of about 30% against the US dollar if we consider the strong performance of bitcoin.
If the US Securities and Exchange Commission (SEC) recognizes the demands of large venture capital companies like Andressen Horowitz and abstains from closing the entire initial ecosystem of the company. supply of coins with too strict policies, the value of chips will likely continue to increase throughout this payback period.
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