Korean Citizens Pay Higher Prices for Bitcoin Compared to Americans

South Korean citizens pay 3% more for Bitcoin $102,943 purchases compared to American buyers to protect against market fluctuations in the cryptocurrency realm. According to CryptoQuant data, this price difference stems from the declining value of the South Korean won.

Regional Price Increase for Bitcoin

At Upbit, South Korea’s largest cryptocurrency exchange, Bitcoin trades at 145,000,000 KRW (approximately 98,600 USD). In contrast, on the Coinbase platform in the United States, Bitcoin was priced around 96,700 USD at the time of writing.

This price disparity is linked to developments following the South Korean parliament’s decision to dismiss Prime Minister Han Duck-soo. This decision came just weeks after the dismissal of President Yoon Suk Yeol and has led the won to drop to its lowest value against the dollar in 15 years.

Concerns Over Democracy

Investment Manager Jeff Park finds the situation alarming.

“These evolving events essentially relate to election fraud and the erosion of trust in the South Korean National Election Commission (NEC). The use of the dismissal as a political tool and allegations of foreign election interference highlight the fragility of democracy against disinformation. This is not just a story about Korea; it’s a warning for democracies worldwide.”

The depreciation of the won has diminished trust in the country’s economy, steering investors towards alternative assets. Cryptocurrencies like Bitcoin have become a popular choice during these uncertain times.

As investors turn to cryptocurrencies to shield themselves from fluctuations in currency values, this trend results in price increases on local exchanges. Thus, the South Korean crypto market operates at higher valuations compared to the United States.

Fluctuations in exchange rates can significantly impact cryptocurrency markets. By closely monitoring local economic and political developments, investors can make informed decisions. Given the volatile nature of the cryptocurrency market, implementing risk management strategies is essential.