Lately, I’ve been looking at the interest rate line first when analyzing the market. When interest rates are high, people prefer to hold cash and wait, reducing risk appetite. The transmission in the crypto space is quite direct: when liquidity tightens, even the hottest narratives tend to turn into quick pullbacks. I personally don’t bother chasing; I keep my positions lighter and wait for the sentiment to cool down before slowly picking up opportunities.

These days, the criticism that the pledge and shared security models are just “copy-paste” structures has resurfaced. I understand. In a high-interest-rate environment, everyone wants to squeeze every bit of yield from their principal, stacking gains on top of gains, but once risk appetite shifts, the first to be cut are often these seemingly “smart” structures. I now prefer to earn a bit less, keep my positions simple, and prioritize being able to sleep well.