These past couple of days, interest rates have reminded me of the same thing again: when money outside gets more expensive, people’s risk appetite shrinks. In crypto, that becomes “fewer people are willing to ride out volatility.” The issue isn’t just whether prices go up or down—it’s that once there’s a pullback, it becomes easier to get swept into a liquidation stampede.

The three old lines I wrote on my sticky note are still the same: reduce your position first, only do what you’re familiar with, and if you’re losing, own it. Especially when I see those extreme scenes of spot/derivatives funding rates—whether the group is arguing about a reversal or they’re continuing to squeeze the bubble (via liquidation/deleveraging), I’m not going to guess the plot anymore. The more absurd the funding rates are, the more I treat them as a “don’t add more” signal.

After dialing my expectations down, I actually feel lighter. I might not make money, but I’m not anxious either. As long as I can stay alive and wait for the next piece of volatility that discipline can help me capture, that’s enough.