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Crypto Update: Bitcoin rebounds, but are new investors buying the dip? On-chain data says no

Bitcoin has jumped above $32,000 Tuesday to the highest level since May 10, while U.S. stocks indexes traded mostly lower, though the two assets have been often trading in tandem during the past few months.

The cryptocurrency was trading at around $32,071, up 4.5% over the past 24 hours, according to CoinDesk data. 

Still, bitcoin is down more than 50% from its all-time high in November, amid broad risk asset selloffs.

Despite lower prices, the bitcoin market has yet to attract many new investors to “buy the dip,” according to a Tuesday note by Glassnode.   

The number of bitcoin wallet addresses with a non-zero balance has been flat for the past few weeks, as investors remained concerned about macroeconomic uncertainty, according to Glassnode. It is consistent with the selloff in the summer of 2021, where bitcoin wallet growth remained muted for about four months.

Meanwhile, the amount of both active addresses and entities holding bitcoin has been stagnant for the past few months, analysts at Glassnode noted.

“The recent sell-off, and lower prices has not yet inspired an influx of new users to the space, and only the HODLers remain,” the analysts wrote. HODLers is a slang referring to buy-and-hold crypto investors.

However, such HODLers, or existing entities on the network, are adding to their holdings significantly, according to the analysts. In particular, entities holding less than 100 bitcoin and those with more than 10,000 have been accumulating the most during the sell-off.

Read: Bitcoin Rallies Past $31,000. One Analyst Says Worst of Bear Market May Be Over.

Also read: Here’s how much money you would have lost if you bought a Bored Ape Yacht Club NFT a month ago

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