Dragon Fly Official insight: Rates on hold — defensive or risk-on? 💹🐉

Markets are digesting “higher for longer” interest rate expectations, and positioning now is key. The interplay between BTC and altcoins is subtle but actionable.
🔍 Market Structure & Analysis

BTC as a macro hedge: With rates stable but high, BTC often behaves like a risk-adjusted safe haven. Large inflows tend to rotate into BTC first when equities or risk-on assets hesitate.

Altcoins and risk appetite: Alts historically lead during rotations from BTC dominance dips or when liquidity expands. Current data shows moderate BTC accumulation on-chain, but altcoins have seen selective spikes in high-liquidity pairs.

Liquidity dynamics: Stable high rates reduce broad speculative flows; only well-supported projects see meaningful rotation. Meme and low-liquidity alts are unlikely to sustain moves unless macro sentiment shifts.

🧠 Dragon Fly’s view:

Defensive BTC positioning makes sense for core holdings — it absorbs macro shocks while preserving exposure to digital assets.

Selective alt rotations are opportunities for strategic allocation, particularly in layer-1s with real adoption and institutional interest. Broad risk chasing is less advisable under current rate expectations.
‍#FedKeepsRatesUnchanged