As the price of Bitcoin trading plummeted by 50% overnight, there are opinions among investors that the cryptocurrency market needs to introduce a circuit breaker system like the stock market.
Circuit breaker refers to the temporary suspension of trading in order to calm the industry when the price falls sharply in the stock market.
In this regard, introducing a fuse into the digital asset souk is good for small and medium-sized individual investors. The fuse system of the traditional financial market has been completed through a number of cutlery, of course, because the fuse does not want the losses to occur.
If the circuit-breaker is triggered by a fluctuation like the S&P 500 index, the Bitcoin fair will stop without any attempts, and the digital currency souk will remain open 365 days a day, and platforms supporting cryptocurrency trading will also benefit.
The bitcoin price rebounded after falling to $3600 after a massive selloff at major cryptocurrency exchanges such as BitMEX, Coinbase and others.
In response, some investors have raised the need to introduce a fuse system into the virtual asset bazaar.
In the U.S., when the initial share price plunges by more than 7%, it stops trading for 15 minutes. On the 12th, a circuit-breaker was triggered by the sharp drop in the S&P 500 index.
The recent deep fall in bitcoin prices from $6k to $3.6k is a sign of the need for fuses, and major exchanges need to work together to compensate for market flaws.
In this regard, if the major exchanges jointly enforce fuses in the digital currency fair, which stands for a decentralized and uncontrolled oil transactions, there may be a problem of market concentration.