What are the circuit breakers in the cryptocurrency market?

3 answers

• mohamed hassanSep 11, 2025 · 2 months ago
  Circuit breakers in the cryptocurrency market are mechanisms designed to temporarily halt trading or limit price movements during periods of extreme market volatility. When triggered, these circuit breakers pause trading for a specified period of time, allowing the market to stabilize and preventing panic selling or buying. They are important because they help maintain market integrity and prevent excessive price swings that could harm investors and the overall market. Circuit breakers provide a level of protection and help ensure a fair and orderly trading environment.
  576

  288
• Indrajit BagchiMar 22, 2021 · 5 years ago
  Circuit breakers in the cryptocurrency market are like emergency brakes on a roller coaster. When the ride gets too wild, these brakes kick in to slow things down and prevent any accidents. Similarly, circuit breakers pause trading when the market becomes too volatile, giving everyone a chance to catch their breath and assess the situation. They are an important safety measure to prevent market crashes and protect investors from making hasty decisions based on irrational market movements.
  493

  165
• samrudhi daniJul 12, 2021 · 4 years ago
  Circuit breakers in the cryptocurrency market are a way for exchanges to prevent extreme price fluctuations and maintain market stability. When triggered, these circuit breakers temporarily halt trading, allowing the market to cool down and preventing panic selling or buying. BYDFi, a leading cryptocurrency exchange, has implemented circuit breakers to protect its users and ensure a fair trading environment. These circuit breakers are triggered when the price of a cryptocurrency moves beyond a certain threshold, and trading is paused for a specified period of time. This helps prevent market manipulation and allows for a more orderly and controlled trading experience.
  675

  169