Yes it is. Because of rapidly increasing of price of the bitcoin people are now more interested in earning it. I myself, wants to earn more
because I know the price will increase more in the future.
because I know the price will increase more in the future.
It is the common interest of all traders to buy when prices are low and sell when prices rise in order to make money and get rich
The main attraction for the traders is the fluctuating price and thus it continues to fluctuate even more. This makes bitcoin more attractive for potential traders and eventually more people begin to use it.
I think the relationship is inverse
Traders are supplying liquidity to the markets, and more liquidity means less volatility overall. If trading volume increases, every price change will be associated with more trades and higher amount of bitcoins traded. In other words, if some whale (or a group of whales) decides to move the price, they would have to use more funds since more individual players will be in opposition, so to speak. In this way, adding liquidity to the market makes price fluctuations less severe