oxygenDec 26, 2021 · 3 years ago6 answers What are the potential effects of a liquidity crunch on the cryptocurrency market?
In the context of the cryptocurrency market, a liquidity crunch refers to a situation where there is a significant decrease in the availability of liquid assets, such as cash or easily tradable cryptocurrencies. What are the potential consequences of a liquidity crunch on the cryptocurrency market? How can it impact the overall market dynamics, trading volumes, and investor sentiment?