Definition ∞ Bitcoin premium signifies a price difference where Bitcoin trades at a higher value on one exchange or in a specific market compared to another. This price discrepancy typically arises from factors such as regional demand, regulatory environments, or liquidity conditions. It represents the additional cost incurred to acquire Bitcoin in a particular trading venue or geographical area. Such premiums can signal market inefficiencies or heightened localized demand.
Context ∞ The existence of a Bitcoin premium often appears in regions with capital controls or limited access to global exchanges, like South Korea or specific over-the-counter markets. News reports frequently highlight these premiums as indicators of localized buying pressure or market isolation. Analyzing premium fluctuations offers insight into capital flows and market access restrictions across different jurisdictions.
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