Recently, for the third time, friends asked me, "Why do you reduce your position whenever interest rates go up?" Honestly, it's not that I understand macro better; when interest rates rise, money has alternatives, and risk appetite immediately changes. Funds that used to boldly bet on narratives are now turned off by volatility, and the stories of "incentives = income" on the blockchain are also exposed: once subsidies stop, liquidity flows out like an untightened faucet, rushing away.

By the way, the NFT royalty mudslinging match also looks quite similar: everyone says they support creators, but when it comes to liquidity in the secondary market, transaction fees/royalties become a question of "can we avoid paying." When macro is tight, people become more pragmatic, and emotional appeals are the first to be cut. Anyway, I now treat my positions as always ready to be withdrawn at any time, not arguing with the market, just surviving.