PiCK

Summary

  • Bitcoin regained stability and held the $75,000 level despite a selloff in US technology stocks.
  • Weakness in Asian markets spread as US stocks and South Korea’s Kospi fell sharply, with a circuit breaker triggered.
  • Market analysts said worries over tighter AI regulation were the main cause of the decline, with technical factors outweighing fundamentals.

Forecast Trend Report by Period

Bitcoin held above $75,000 as a selloff in US technology stocks spread to Asian equities. South Korea’s Kospi fell more than 8% in early trading, triggering a temporary halt.

Cointelegraph reported on November 6 that Bitcoin slid as much as 6.6% in the previous session to $75,109 before regaining its footing above $75,000. TradingView data showed the token trading near its 50-week simple moving average of $75,733.

US stocks also suffered sharp losses in the previous session. The S&P 500 fell 4.4%, while the tech-heavy Nasdaq Composite dropped 5.5%. The Philadelphia Semiconductor Index, which tracks 30 chip stocks, tumbled 12.2%.

South Korea’s Kospi Composite Index dropped more than 8% shortly after the open on November 6, triggering a circuit breaker that halted trading for 20 minutes. The benchmark later pared some losses but still closed down 6% at 5,059.69, its lowest close since March 31. Deputy Prime Minister and Finance Minister Lee Hyung-il held an emergency meeting and announced a temporary measure exempting securities firms for three months starting Monday from the requirement to maintain a 140% collateral ratio on margin loans.

Market analysts cited mounting concern over tighter artificial intelligence regulation after Democrats won control of both chambers of Congress in the US midterm elections as the main driver of the selloff. The Kobeissi Letter wrote on X that “a total ban on AI is effectively impossible” and that the latest decline was driven more by technical factors than by fundamentals.

Economist Mohamed El-Erian wrote in a Substack note that the US approach of easing AI regulation was justified in terms of the technology’s productivity potential and national security. But it fell short on safety and social acceptance. He said the backlash reflected a mix of genuine concern, lack of information and behavioral factors.

Minseung Kang