These days I've been looking at interest rates again, basically it’s about whether the market is willing to take risks: when money is expensive, everyone prefers to hold cash or government bonds that are "safe," on-chain this tends to shrink trading volume, and leverage isn't as easy to borrow. My own positions tend to become more cautious, mainly watching the concentration of holdings—if it's too concentrated, I really don't dare to join in the excitement.

Just a quick aside: now various on-chain data tools and tagging systems are said to be lagging or potentially misleading, which isn't surprising. When macro conditions tighten, whales can easily switch masks, and you'd think "smart money is entering the market"...
Anyway, I’d rather earn a little less than be the last sucker holding the bag.