AI Stocks Imploded, Bitcoin Barely Moves Amid Global Market Chaos

The AI sector experienced a significant selloff this week, causing Bitcoin to fall as low as $62,500. However, Bitcoin recovered to around $64,000 by the end of the week, but only because it was largely ignored in the market turmoil.

The South Korean stock market fell 8% in a single session due to the global chip selloff, pushing the KOSPI down 35% on the month. The finance ministry announced plans to 'stabilize' the market after the market collapsed by 44% in just 40 days.

Leopold Aschenbrenner's Situational Awareness fund was highly levered long on AI stocks, and its forced unwind has been attributed as a major contributor to the selloff. Citadel reportedly bought most of the fund's stock portfolio after the liquidation.