Should Bitcoin Have Trading Halts or Circuit Breakers?

Should Bitcoin Have Trading Halts or Circuit Breakers?

October 19, 1987. Better referred to as Black Monday (now a Showtime unique sequence), it was the worst market crash in US historical past since Black Tuesday on October 29, 1929, which triggered the Great Depression. On Black Monday, the Dow Jones Industrial Average fell 22.6%, whereas S&P 500 futures contracts plummeted 29%.

With buying and selling volumes sky-high and techniques overwhelmed everywhere in the world in October 1987, an answer was lastly put in place referred to as “buying and selling halts,” which mainly acted as circuit breakers to cease buying and selling. To today, the SEC regulates market-wide buying and selling halts, though a person market, even a person inventory, can set off its personal freeze.

Trading halts can cease buying and selling for 15 minutes and, in extreme cases, can shut buying and selling for the day.

On March 12, 2020, the inventory market plunged severely because of the world pandemic, triggering a Level 1 halt.

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While the standard monetary markets have a system in place — what about cryptocurrency? Bitcoin has skilled some main temper swings in response to financial uncertainty, however will buyers welcome regulatory motion of their decentralized market?

To study extra, watch the video beneath.


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