How Are Circuit Breaker Thresholds Determined and Do They Differ between Cryptocurrency and Traditional Stock Exchanges?

In traditional stock exchanges like the NYSE, circuit breaker thresholds are set by regulators (the SEC) and are based on percentage declines in a major index like the S&P 500 (e.g. 7%, 13%, 20%).

They are standardized across the market. In contrast, the cryptocurrency market is fragmented and largely unregulated.

Individual crypto exchanges set their own rules. Their circuit breakers, if they exist at all, are often based on the price movement of a single asset (e.g.

Bitcoin) and can vary wildly in their trigger percentages and halt durations from one exchange to another.