10x Research: The crypto market may introduce a “circuit breaker” mechanism to deal with extreme volatility

Odaily Planet Daily News According to a report by 10 The report pointed out that the automatic clearing system designed to provide liquidity has actually amplified chaos in extreme market conditions, prompting institutions to re-examine their risk management systems.

A new focus of discussion is emerging in the industry - whether crypto exchanges should learn from traditional financial markets and introduce "circuit breakers" to limit extreme fluctuations. 10x Research pointed out that if this move comes to pass, it may permanently change the volatility structure and profit logic of the crypto market. The report also recalls that after Musk announced that Tesla would stop accepting Bitcoin payments in 2021, the market rebounded at the political level due to leverage liquidation, and the far-reaching impact of this round of plunge may also reshape the structure of the crypto market.

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