But, when there is a shortage of USD now, will bitcoin become a liquidity provider?
The shortage of USD has given strength to the USD. If I owned USD, and USD is growing in strength, why would I sell it for a weaker asset?
I wouldn't.
Suppose that you are selling goods, and suddenly all your customer have less USD to spend, that impact your sale, what will you do? You will welcome customers with other money like bitcoin, that is what I mean