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?
It will increase even more because we are in a bull run now, but of course it still depends on the amount traded by traders. It means that if that is a large amount, let's say that each trader has 100$ each and the number of traders is 1M, which means that 100M dollars will be immediately introduced to the market.
But the question is, are there only 1 million traders that we have in this field of crypto or bitcoin industry in the whole world today? Because each trader does not have the same amount they trade in the market, right? So, there is really an impact on volatility no matter where we look at it.