OPEN-SOURCE SCRIPT
KIMCHI_PREMIUM(UPBIT/COINBASE)
**KIMCHI PREMIUM (UPBIT / COINBASE)**
This indicator measures the Kimchi Premium — the price difference between Bitcoin traded on a Korean exchange (Upbit, KRW pair) and a global USD-based reference (Coinbase BTCUSD), adjusted for the USD/KRW exchange rate.
---
### 🔍 Concept
The Kimchi Premium is calculated as:
[
\text{Kimchi Premium (%)} = \frac{\text{KRW Price} - (\text{USD Price} \times \text{USDKRW})}{\text{USD Price} \times \text{USDKRW}} \times 100
]
* **KRW Price** → Upbit BTC/KRW
* **USD Price** → Coinbase BTC/USD
* **USDKRW** → Exchange rate
This ensures that the comparison is normalized into the same currency (KRW), allowing a clean measurement of relative price deviation.
---
### ✅ What This Indicator Shows
* **Positive values** → Bitcoin is trading at a premium in Korea
* **Negative values** → Bitcoin is cheaper in Korea (reverse premium)
* **Near 0%** → Prices are aligned globally
---
### ⚙️ Why Coinbase BTCUSD?
This script uses **BTCUSD (not BTCUSDT)** to maintain strict currency consistency:
* Eliminates stablecoin-related distortions (e.g., USDT depeg)
* Provides a cleaner, “theoretical” premium based on fiat pricing
---
### ⚠️ Important Notes
* This reflects **relative price deviation**, not arbitrage profitability
* Does **not account for**:
* fees
* transfer constraints
* slippage
* capital controls
* Coinbase may not always reflect the fastest-moving global price (compared to derivatives-heavy exchanges like Binance)
---
### 📊 Practical Interpretation
* Rising premium → strong local demand / capital inflow
* Falling premium → weakening domestic demand or global price catching up
* Divergence between price and premium can signal structural imbalance
---
### 🧠 Suggested Use
This indicator is best used alongside:
* BTCUSD or BTCUSDT price trends
* USDKRW (currency strength)
* Market liquidity / sentiment indicators
---
### 📌 Summary
This script provides a **clean, currency-consistent Kimchi Premium metric**, isolating domestic vs global Bitcoin pricing without stablecoin distortion.
---
This indicator measures the Kimchi Premium — the price difference between Bitcoin traded on a Korean exchange (Upbit, KRW pair) and a global USD-based reference (Coinbase BTCUSD), adjusted for the USD/KRW exchange rate.
---
### 🔍 Concept
The Kimchi Premium is calculated as:
[
\text{Kimchi Premium (%)} = \frac{\text{KRW Price} - (\text{USD Price} \times \text{USDKRW})}{\text{USD Price} \times \text{USDKRW}} \times 100
]
* **KRW Price** → Upbit BTC/KRW
* **USD Price** → Coinbase BTC/USD
* **USDKRW** → Exchange rate
This ensures that the comparison is normalized into the same currency (KRW), allowing a clean measurement of relative price deviation.
---
### ✅ What This Indicator Shows
* **Positive values** → Bitcoin is trading at a premium in Korea
* **Negative values** → Bitcoin is cheaper in Korea (reverse premium)
* **Near 0%** → Prices are aligned globally
---
### ⚙️ Why Coinbase BTCUSD?
This script uses **BTCUSD (not BTCUSDT)** to maintain strict currency consistency:
* Eliminates stablecoin-related distortions (e.g., USDT depeg)
* Provides a cleaner, “theoretical” premium based on fiat pricing
---
### ⚠️ Important Notes
* This reflects **relative price deviation**, not arbitrage profitability
* Does **not account for**:
* fees
* transfer constraints
* slippage
* capital controls
* Coinbase may not always reflect the fastest-moving global price (compared to derivatives-heavy exchanges like Binance)
---
### 📊 Practical Interpretation
* Rising premium → strong local demand / capital inflow
* Falling premium → weakening domestic demand or global price catching up
* Divergence between price and premium can signal structural imbalance
---
### 🧠 Suggested Use
This indicator is best used alongside:
* BTCUSD or BTCUSDT price trends
* USDKRW (currency strength)
* Market liquidity / sentiment indicators
---
### 📌 Summary
This script provides a **clean, currency-consistent Kimchi Premium metric**, isolating domestic vs global Bitcoin pricing without stablecoin distortion.
---
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La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.