Does number of traders affect volatility?
Does number of traders affect volatility?
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
adrian ondachchi Answered question May 17, 2024
Obviously more traders will affect volatility. This is because if there are more traders there more people who are willing to buy and sell bitcoin. Thus affecting the price of bitcoin everyday. In other terms, the demand and supply will increase significantly which will know that this is the reason for volatility.
adrian ondachchi Answered question May 17, 2024