Bitcoin Holds $75K as KOSPI Tumbles 8% on AI Regulation Fears

Bitcoin held above $75,000 on Friday, consolidating near the 50-week simple moving average for BTC/USD at $75,733 as a global technology-stock sell-off reached Asian markets. The cryptocurrency had fallen as much as 6.6% on Thursday to $75,109 on Bitstamp. Over the same Wall Street session, the S&P 500 dropped 4.4%, the Nasdaq Composite lost 5.5%, and the Philadelphia Semiconductor Index plunged 12.2%.

South Korea’s KOSPI Composite Index fell more than 8% shortly after Friday’s open, activating a circuit breaker that halted trading for 20 minutes. The index pared its losses to close 6% lower at 5,059.69 points, its lowest close since March 31.

Analysts linked the Wall Street decline to fears that tighter US AI regulation could weigh on technology companies following Democrats’ gains in the House and Senate. Market commentary cited Democratic Rep. Yassamin Ansari’s call to pause advanced AI development, while concerns about the sector’s heavy capital spending added pressure. Analysts characterized the US stock rout as more technical than fundamental, although volatility quickly spread beyond Wall Street.

At an emergency meeting, South Korean Deputy Prime Minister and Finance Minister Lee Hyoung-il outlined measures to reduce forced selling. From Monday, brokerages will be exempt for three months from the requirement to maintain a 140% collateral ratio on margin loans. Authorities also said they were preparing further measures if volatility increased, describing the domestic market as overly reactive to global stock-market swings following the US midterms.