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Market Halt Meaning

A temporary suspension of trading for a specific asset or an entire exchange. This is usually triggered by "Circuit Breakers"-automated rules that pause the market if the price drops too fast (e.g., a 10% drop in 5 minutes).

The purpose of a halt is to give investors time to "breathe" and absorb new information, preventing a "Panic Spiral." It allows market makers to reset their algorithms and ensures that the "Market Data Feeds" can catch up with the volume. Trading usually resumes after 15 to 30 minutes.

In the "Decentralized" world, market halts are much rarer and harder to implement. Because no one "owns" the blockchain, the market never closes.

This 24/7/365 nature is a key feature of digital assets, but it also means that "Flash Crashes" can happen on a Sunday at 3 AM with no "Circuit Breakers" to stop the bleeding.

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