10x Research: The crypto market may introduce a "circuit breaker mechanism" to cope with extreme Fluctuation.

Odaily News According to a report by 10 x Research, the recent big dump in the crypto market has exposed deep-seated issues in the liquidation and risk control mechanisms of exchanges, with some platforms profiting from the events while others incurred losses of hundreds of millions of dollars. The report points out that automated liquidation systems designed to provide liquidity have instead amplified chaos during extreme market conditions, prompting institutions to reevaluate their risk management systems. A new focal point of discussion is emerging in the industry—whether crypto exchanges should learn from TradFi and introduce “Circuit Breakers” to limit extreme fluctuations. 10 x Research notes that if this move is implemented, it could permanently change the fluctuation structure and profit logic of the crypto market. The report also recalls that after Musk announced Tesla's halt on Bitcoin payments in 2021, the market rebounded politically due to leveraged liquidations, and the far-reaching effects of this round of big dump may similarly reshape the structure of the crypto market.