Traders becoming something more common definitely changes the price, but holders change the price a lot more in quicker fashion. So, what volatility shows here is that if there are more traders, we get to see a lot more swings daily but to lower level, like maybe 10% and under for trader world if they became bigger power.
I think it also depends on the amount the holders are keeping with them because if the whales are holding then yeah they will shake up the market no doubt but if there are large number of holders holding less amount of coins then they cannot change much because when they decide to sell will not happens simultaneously.
volatile it is due to lack of demand rather than supply or vice versa, not from holders,
holders keep the price from falling from support, but traders do whatever they want,
this is how cryptocurrency is very volatile.
Yeah agree, but the big whales that are holding like 10k BTC actually control the market in a big manner if even they are doing nothing but just holding because them holding itself means that the market will not crash. Imagine when the price was doing down like earlier this year and during those times if a whale dumped their coins the market might have broken into two halves.