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Low Korea Premium Suggests Market Has More Room to Run

  • Historically, when the Korea Premium index dips into negative territory at the start of bullish trends, it reflects caution among Korean traders due to past volatility shocks.
  • Conversely, sharp spikes in the Korea Premium signal peak FOMO and often coincide with local tops in the crypto market, preceding a major selloff.
  • The low Korea Premium reading indicates grounded sentiment and suggests that there is no irrational exuberance currently in the market.
  • The data implies that there may be more upside potential before a major correction, as historical peaks in the Korea Premium have been reliable warning signs of overheating, which is not the case currently.

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