New Investor Conviction

Definition ∞ New investor conviction refers to the strong belief and confidence demonstrated by recent market entrants in the long-term value and potential of a digital asset. This is evidenced by their willingness to acquire and hold assets, even during periods of market volatility. It suggests a broadening of the investor base beyond early adopters. This contributes to overall market stability and sustainable growth.
Context ∞ Gauging new investor conviction is important for assessing the sustainability of a market rally or recovery. Metrics such as the growth in new unique addresses or long-term holding patterns among recent buyers can indicate this trend. News often discusses the role of new investor conviction in driving subsequent market cycles.