Bitcoin held above $75,000 on Friday as a sell-off in US technology stocks spread to Asian markets, triggering a circuit breaker in South Korea. The cryptocurrency traded near its 50-week simple moving average of $75,733, according to TradingView data, after falling as much as 6.6% during the previous Wall Street session.
KOSPI halts trading after 8% drop
South Korea’s KOSPI Composite Index fell more than 8% shortly after the open on Friday, activating a mechanism that halted trading for 20 minutes. The index pared some losses to close 6% lower at 5,059.69 points, its lowest closing level since March 31.
At an emergency meeting, South Korean Deputy Prime Minister and Finance Minister Lee Hyoung-il announced measures to reduce forced selling. Local media reported that brokerages will be exempt from maintaining a 140% collateral ratio on margin loans for three months starting Monday. Authorities stated they would prepare further measures if volatility increased.
An unnamed government source told Chosun that officials recognize with gravity the expanding volatility in global stock markets following the US midterm elections.
Tech stocks slide on regulatory fears
The Asian market turbulence followed sustained selling on Wall Street Thursday. The S&P 500 closed down 4.4% and the Nasdaq Composite dropped 5.5%. The Philadelphia Semiconductor Index finished 12.2% lower.
Analysts linked the losses to fears of tighter AI regulation after Democrats won the House and Senate. Market commentary service The Kobeissi Letter cited an X post by Democratic Representative Yassamin Ansari calling for a pause on advanced AI development as a factor in investor sentiment.
The Kobeissi Letter stated in an X post that an outright US ban on AI is unlikely with near certainty, arguing such a move would cause the US to surrender its position in the global AI race to China. Economist Mohamed El-Erian wrote in a Substack note that America’s approach to AI has fallen short on safety and diffusion, reflecting genuine concerns and information failures.
