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RE: Bitcoin (BTC) Morning Update: Expect Bull Wicks

in #bitcoin7 years ago

Liquidity shortage? WTF are you talking about. There is so little BTC bought on margin that there is no such thing as a liquidity shortage. You like to throw terms around without having the faintest idea what you are talking about.

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What is a 'Liquidity Crisis'
A liquidity crisis is a negative financial situation characterized by a lack of cash flow. For a single business, a liquidity crisis occurs when the otherwise solvent business does not have the liquid assets (i.e., cash) necessary to meet its short-term obligations, such as repaying its loans, paying its bills and paying its employees. If the liquidity crisis is not solved, the company must declare bankruptcy. An insolvent business can also have a liquidity crisis, but in this case, restoring cash flow will not prevent the business's ultimate bankruptcy.