’’The Street" in crypto is not new investors! It is capital that always arrives late.
"The Street" in the cryptocurrency market does not necessarily refer to beginner investors or specific social groups.
It is a universal phenomenon defined by capital entering the market irresponsibly, driven by emotions – mainly fear of missing out on profits (FOMO).
This includes both inexperienced individuals and wealthy investors from traditional markets.
The key moment for "the street" to enter is during the advanced bull phase when prices reach or exceed historical peaks (ATH).
This capital needs strong social proof that "everyone is making money," which paradoxically makes its entry a signal of an impending cycle peak.
What exactly is the "street" capital?
Contrary to popular myths, the "street" is not Mr. Taxi Driver or Ms. Shopkeeper.
It is a metaphor for capital that follows the trend, rather than creates it.
Its main feature is emotional investing, without understanding the fundamentals.
Interestingly, experiences from the bull markets in 2017 and 2021 showed that even experienced managers and wealthy individuals can become the "street" when driven by greed.
Mike Novogratz with a LUNA tattoo
What conditions must be met for the "street" to enter the market?
"Street" will not appear until certain conditions are met.
First, a favorable macroeconomic environment must be created, such as rising global liquidity and low interest rates, which encourage investment in risky assets.
Second, Bitcoin and other key projects must break their previous ATH.
It provides a psychological sense of security that the uptrend is strong and sustainable. Only then do those driven by herd mentality feel that it is the right moment.
Why is understanding this phenomenon crucial for your strategy?
Observing the moods of the "street" is a powerful analytical tool.
When your friends who have never been interested in investing start asking about memecoins, it is a warning signal.
This means the market is transitioning from the "smart money" phase to the "dumb money" phase, and euphoria may be close to its peak.
Instead of following the crowd, a smart investor at this time realizes their goals and prepares for the inevitable correction.
Summary (Key Takeaways):
"Street" is capital, not people: It is money entering the market under the influence of FOMO, regardless of the owner's experience.
Enters at peaks: The street needs confirmation in the form of new ATH and overall euphoria to invest.
It is an indicator of sentiment: Its appearance is a signal that the market is becoming overheated and caution should be increased.
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