- Fear & Greed Index drops to 12 as BTC falls to $70,935.
- Korean families average $220,000 USD losses in 2026 AI crashes.
- BOK demands 10% drop halts via circuit breakers on exchanges.
Park Min-soo hunched over glowing screens in his dim Seoul apartment on April 13, 2026. Bitcoin plunged to $70,935 USD, down 1%. Ethereum fell to $2,194.65 USD, off 0.9%, per CoinMarketCap data. The Bank of Korea (BOK) demanded circuit breakers on crypto exchanges that day.
Korean families like Park's lost $220,000 USD on average in AI-fueled flash crashes. Extreme fear gripped markets. The Crypto Fear & Greed Index hit 12, per alternative.me data.
Park's $220K Loss Ignites BOK Circuit Breakers Demand
Park slaved nights at a factory to fund his daughter's tuition through crypto investments. AI trading bots on Bithumb unleashed a brutal sell-off. High-frequency algorithms dumped assets in seconds.
Park watched half his portfolio vanish. "I trusted the technology," he told reporters, voice cracking. His wife pawned jewelry to cover debts. Thousands shared this nightmare.
Korea counts 1.2 million crypto users. Households shed 5 trillion KRW ($3.7 billion USD) in 2026 crashes, according to The Korea Times.
BOK Governor Rhee Chang-yong spotlighted these tragedies. He pushed for trading halts at 10% drops.
Crypto Fear & Greed Index Crashes to 12
Panic selling swept assets. XRP climbed 0.4% to $1.33 USD. BNB rose 0.7% to $598 USD. Major coins tanked.
Upbit processes $10 billion USD daily volume. Flash crashes erased 20% without safeguards.
Lee Ji-eun forfeited 150 million KRW ($110,000 USD). Family loans backed her altcoin gambles. AI volatility ravaged her holdings.
AI Trading Fuels Korean Flash Crashes
Machine learning algorithms stampeded trades into sell spirals on local exchanges. Governor Rhee flagged systemic risks.
Circuit breakers pause trading at thresholds. U.S. stocks halt at 7%, 13%, and 20%, per SEC rules.
BOK eyes 5-minute pauses at 10% drops. These curb AI-driven swings.
KB Financial's Kim Soo-hyun backs the plan. "AI trading demands guardrails," he said. Rollout aims for Q3 2026.
Industry Rallies Behind BOK Circuit Breakers
Governor Rhee faced reporters in Seoul. He tied family devastation to unchecked exchanges. BOK logged 15% weekly volatility spikes.
Upbit and Bithumb pledged reviews. They dominate 70% of trading volume.
Seoul National University's Chang Yoon-hee simulated outcomes. "Breakers slash crash depth by 40%," she said.
The Finance Ministry syncs with BOK. New laws may pass by June 2026.
Protests Erupt for Crypto Safeguards
Park mobilized 500 protesters outside BOK headquarters. Banners screamed "Stop AI Carnage."
Ji-eun flashed her trading ledger. Ethereum dove 15% sans halts.
Binance deploys breakers globally. Korean retail investors trail, fully exposed.
Bloomberg notes institutional inflows persist. Retail traders absorb the pain.
USDT clung to its $1.00 USD peg amid turmoil. Banks probe supervised bridges.
BOK Circuit Breakers to Tame AI Risks
AI models now bake in breaker simulations. Forecasts show 30% fewer extremes.
Glassnode tracked 20,000 BTC ($1.4 billion USD) dumps from Korean wallets this month.
BOK pilot tests succeeded 85% of the time.
Kim Soo-hyun foresees halved losses. BOK circuit breakers deliver stability against AI plunges. With Fear & Greed at 12, regulators face their sternest test yet.
