What happens if liquidity decreases?
I'm wondering about the consequences when liquidity goes down. Specifically, what impact does a decrease in liquidity have on the market or any financial situation?
What happens if liquidity decreases crypto?
Could you elaborate on the potential consequences of decreased liquidity in the cryptocurrency market? How might it impact traders, investors, and the overall stability of the market? Are there any specific mechanisms or strategies that could be employed to mitigate the risks associated with reduced liquidity? Additionally, how does liquidity compare to other factors that influence cryptocurrency prices and market dynamics?