Bitcoin is currently trading at a lower price in South Korea despite a broader market rebound across global exchanges.

According to data from the crypto market data firm Kaiko, the BTC Kimchi Premium turned negative for the second time since September.

Kimchi Premium Turns Negative

The bitcoin Kimchi Premium is the difference between BTCs price on South Korean exchanges and global crypto trading platforms. When the metric is positive, bitcoin trades at a more expensive price on Korean exchanges. However, the reverse is the case when the premium turns negative.

This market shift is a result of strict capital controls by the South Korean government, prohibiting foreign investors from trading on crypto exchanges in the country.

Additionally, crypto supply on exchanges is limited. South Korea’s largest one, Upbit, offers users access to 215 coins, which is significantly lower than several of its global competitors.

Due to the limited supply, investors’ demands have soared, resulting in large price gaps. At one point, bitcoin traded 30% higher on Korean exchanges.

However, while global bitcoin prices have rebounded amid growing optimism about the upcoming U.S. presidential elections, the digital asset is trading at a lower price in South Korea.

Bitcoin Rally Incoming?

Market analysts believe the Kimchi Premium had turned negative due to waning investor sentiment in the Korean market. According to Kaiko, the current negative trend indicates that a bitcoin rally could be imminent. Historically, bitcoin has often recorded significant price surges following a negative Kimchi Premium.

Additionally, the Coinbase Premium, another important metric that measures the difference between BTC price on Coinbase Pro and Binance, has recently changed course.

The indicator is also hovering within the negative zone, a phenomenon that typically precedes bitcoin price rallies. Thus, with both of these metrics in the red now, BTCs price seems primed for an upcoming price surge. Other factors that could propel such an increase in the short-term are the upcoming US elections and a potential rate cut by the Federal Reserve.