Bitcoin holds $75,000 while global markets reel from a tech-led sell-off and AI regulation fears, forcing South Korea to intervene in its crashing KOSPI index.
The tech-heavy Nasdaq Composite closed down 5.5% on Thursday as Democrats' House and Senate wins sparked fears of tighter AI regulation, compounded by concerns over the sector's capital spending. The Philadelphia Semiconductor Index fell 12.2%, showing losses concentrated in tech, and Asian markets continued the sell-off on Friday.
Democrats won the House and Senate in the US midterm elections, and calls such as Rep. Yassamin Ansari's for a 'pause on advanced AI development' fueled fears of tighter AI regulation, on top of existing concerns about the sector's capital spending.
The Kobeissi Letter argues an outright US ban on AI will not happen with near-certainty, and the S&P 500 declined only about 2.5% excluding tech, suggesting losses were concentrated in the tech sector.
The S&P 500 closed down 4.4% on Thursday amid sustained selling throughout the Wall Street session, driven by fears of tighter AI regulation after Democrats won the House and Senate. The negative momentum spread to Asian markets on Friday, with South Korea's KOSPI falling 6%, signaling continued risk-off pressure.
It closed down 4.4% on Thursday, though the decline was only about 2.5% excluding the tech sector.
Fears of tighter AI regulation after the Democrats won the House and Senate, including calls for a pause on advanced AI development, compounded existing market concerns about the tech sector's capital spending.
The KOSPI fell more than 8% shortly after Friday's open, triggering a 20-minute circuit breaker halt, and closed 6% lower at 5,059.69 points, its lowest close since March 31. The government announced emergency measures, including a three-month exemption from the 140% collateral ratio on margin loans, and warned further measures would come if volatility increases.
It fell more than 8% shortly after the open, triggering a circuit breaker that halted trading for 20 minutes, then pared losses to close 6% lower at 5,059.69 points, its lowest close since March 31.
At an emergency meeting, deputy prime minister and finance minister Lee Hyoung-il announced measures to reduce forced selling, including a three-month exemption from Monday for brokerages from the requirement to maintain a 140% collateral ratio on margin loans, with further measures planned if volatility increases.
Bitcoin fell as much as 6.6% on Thursday alongside a US tech sell-off and is trading near its 50-week SMA at $75,733, having held above $75,000 on Friday. Its correlation with the S&P 500 has become more positive, so continued equity weakness pressures BTC, while Bitcoin and Ether ETFs posted $530M in outflows as election gains evaporated.
Bitcoin's correlation with the S&P 500 has become more positive in recent months, so the tech-driven sell-off over AI regulation fears pulled BTC down as much as 6.6% on Thursday.
Yes, BTC/USD is trading near its 50-week simple moving average around $75,733, having held above $75,000 on Friday.
Bitcoin stabilized above $75,000 on Friday as a sharp tech-driven sell-off in the U.S. spread to Asian markets. The KOSPI index triggered a circuit breaker after an 8% intraday plunge, prompting the South Korean government to implement emergency measures to curb forced selling. The market volatility follows concerns over potential AI regulation after Democratic gains in the U.S. midterm elections.
The KOSPI fell more than 8% shortly after Friday's open, triggering a mandatory 20-minute trading halt due to extreme volatility following the U.S. tech sell-off.
Markets are reacting to fears of tighter AI regulation following Democratic wins in the U.S. midterm elections, which compounded existing concerns regarding tech sector capital spending.