Bitcoin, the largest cryptocurrency, reached a new all-time high of 79,422,000 won ($71,000) at 5:55 a.m. UTC on the Upbit exchange in South Korea.
The so-called “kimchi premium,” an indicator named after a traditional South Korean side dish that shows the spread between local and global crypto prices, is currently sitting at over 23 percent.
It presents an incredible arbitrage opportunity for those traders who manage to get around South Korea’s strict capital flow restrictions that make it extremely challenging to transfer money in and out of the country.
Local cryptocurrency exchanges do not allow foreigners to register due to regulatory curbs.
Even though the soaring kimchi premium could be a harbinger of a market top, it is still nowhere near its historic peaks. Back in January 2018, it soared to 47 percent.