Definition ∞ New investor absorption describes the market’s capacity to take in and accommodate fresh capital and new participants without significant price disruption or immediate selling pressure. This process indicates a healthy and expanding market where new demand can be met. It often reflects growing mainstream interest and increased accessibility to digital assets.
Context ∞ News reports frequently highlight metrics related to new investor absorption, such as an increase in unique wallet addresses or exchange sign-ups, as a sign of market vitality. High absorption rates can sustain price growth and market stability. This phenomenon is important for assessing the broader adoption trajectory of cryptocurrencies.