Volatility determined by percentage of traders vs hodlers?

[redsun114]

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.

[1715408589]

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[1715408589]

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[hridoyb]

Hi,

I saw a statistic online, that currently lists the percentage of hodler of bitcoin (holding 1+ years) vs number of traders who hold btc 1 month or less. Currently there are 64.99% hodlers of bitcoin vs %35.01 of traders. My question is, does an increase in percentage of traders increase the magnitude of price swings? If say the percentage of hodlers of bitcoin stabilizes in the future to 90%, will the magnitude of short term price swings also decrease? In other words does volatility decrease as percentage of hodlers increases? Is that why "bluechip stocks" are less volatile? because a large percentage of the investors are holding?

Bitcoin is the most violent coin in cryptocurrency . So anytime price will be so high or down so low.Most of bitcoin user are hold their coin if they start trading bitcoin cannot violent so high.when bitcoin get negative Or price down most of the people sell it for this panic same case on getting positive .

[jrrsparkles]

Only traders are responsible for the price changes because actual price determined by the supply and demand which is driven by the cryptocurrency exchanges literally by the traders who are executing the trade orders. But we can say that whales are also responsible for huge price changes.

[Smartvirus]

Volatility is measured by active traders trading the market at a particular period in contrast to hoarders who will hold the coin for a long period of time. The both are important to ensure bitcoin have a controlled price through demand and supply but then, volatility isn't based on the hoarders but rather on the active traders.
Today, we have lots of hoarders in contrast to traders due to the technicality involved in trading but they all play together to make the system a success.

[CryptopreneurBrainboss]

My question is, does an increase in percentage of traders increase the magnitude of price swings? If say the percentage of hodlers of bitcoin stabilizes in the future to 90%, will the magnitude of short term price swings also decrease? In other words does volatility decrease as percentage of hodlers increases? Is that why "bluechip stocks" are less volatile? because a large percentage of the investors are holding?

Less activity in the market result to less price swings so obviously if the percentage of holders increase there would be less swings in regards to price dropping and rasing instead we'll see continuous increased in price since the demand of the coins would had been increased and they might not be enough supply to in the market to satisfy the demand.

More traders guarantees high volatility while holders guarantee stability. Traders are always after quick profit securing which is why they'll seized any opportunities they see to take profit from the market while holders careless about what the current market situations are but anticipate of a future filled with big profit result as a reward for their patience

[xSkylarx]

Hi,

I saw a statistic online, that currently lists the percentage of hodler of bitcoin (holding 1+ years) vs number of traders who hold btc 1 month or less. Currently there are 64.99% hodlers of bitcoin vs %35.01 of traders. My question is, does an increase in percentage of traders increase the magnitude of price swings? If say the percentage of hodlers of bitcoin stabilizes in the future to 90%, will the magnitude of short term price swings also decrease? In other words does volatility decrease as percentage of hodlers increases? Is that why "bluechip stocks" are less volatile? because a large percentage of the investors are holding?

I don't know how bluechip stocks work but I know the basics of supply and demand law. If there are huge demand for something but the supply is low then the price will surely increase like bitcoin. How does that work in the bluechip market if most of the investors are hodling, who is creating the demand on their market?

[MusaMohamed]

I saw a statistic online, that currently lists the percentage of hodler of bitcoin (holding 1+ years) vs number of traders who hold btc 1 month or less. Currently there are 64.99% hodlers of bitcoin vs %35.01 of traders. My question is, does an increase in percentage of traders increase the magnitude of price swings? If say the percentage of hodlers of bitcoin stabilizes in the future to 90%, will the magnitude of short term price swings also decrease? In other words does volatility decrease as percentage of hodlers increases? Is that why "bluechip stocks" are less volatile? because a large percentage of the investors are holding?

This article Quantifying Short-Term and Long-Term Holder Bitcoin Supply. Is it what you are talking about?

The chart classifies long and short term holder with their days of holding bitcoin. The time from 100 days to 150 days (>3 months to 5 months) are important to know who are long term holders and who are short term holders. The article presented that there are 66% of circulating supply about 12.3 M bitcoin are from long term holders. The Long-Term Holder (LTH) Bitcoin supply chart shows when price goes up (bull), the total bitcoin is hold by long term holders often climbs.

[noorman0]

I think volatility is determined only by the trader. Regardless of the percentage of the number of holders, it does not mean that they are directly involved in price changes. In fact, new traders and holders came in every day and did not cause prices to increase consistently. Holders also have no significant differences with traders, only their trading terms differ.

[wxa7115]

Hi,

I saw a statistic online, that currently lists the percentage of hodler of bitcoin (holding 1+ years) vs number of traders who hold btc 1 month or less. Currently there are 64.99% hodlers of bitcoin vs %35.01 of traders. My question is, does an increase in percentage of traders increase the magnitude of price swings? If say the percentage of hodlers of bitcoin stabilizes in the future to 90%, will the magnitude of short term price swings also decrease? In other words does volatility decrease as percentage of hodlers increases? Is that why "bluechip stocks" are less volatile? because a large percentage of the investors are holding?

While that is an interesting metric and one that I have seen a lot of times I think it is flawed in the sense that it doesn't take into account the people that are outside of the market and that are getting in and those that are inside the market and get out, it also has the flaw that for example if you want to become a long term holder but you just bought your coins using that statistic it seems that you are a trader but in fact you have the intention of becoming a long term holder, you simply did not have the time to demonstrate that this is the case.

And obviously the opposite happens as well, you may be holding your coins and you did this for a year but that doesn't make you long term holder, you have all the intentions of becoming a trader and you simply didn't because you didn't had the time or because you did not saw a single good opportunity to make a trade.

[crzy]

Its hard to see a blue chips here actually and this is different from stock market since Bitcoin is very volatile and you’ll lose money easily and traders and hodlers dictates the price obviously. If you’re going to trade in cryptomarket then you must be ready for volatility, every coins/tokens here is volatile as expected.