According to @CNBC, former Treasury Secretary and ex-Goldman Sachs chair Robert Rubin urged investors to keep the October 1987 Black Monday crash in mind as a present risk cue for markets, highlighting downside scenarios worth considering for positioning. Source: CNBC. The 1987 crash saw the Dow Jones Industrial Average plunge 22.6 percent in a single day and led to the adoption of market-wide circuit breakers that continue to govern equity selloffs. Sources: Federal Reserve History and U.S. Securities and Exchange Commission. For crypto traders, equity stress has historically transmitted to digital assets as correlations with U.S. stocks rose markedly after 2020, increasing downside risk to BTC and ETH during risk-off shocks. Source: International Monetary Fund.

According to The Kobeissi Letter, market Circuit Breakers are designed to halt trading if the S&P 500 falls -7% below the previous day’s close before 3:25 PM ET, aiming to prevent panic selling and stabilize the market. This mechanism is particularly relevant as retail investors face their first potential bear market, highlighting the importance of understanding these safeguards in volatile trading conditions.