Can someone explain how fed rate hikes affect BRC ?

I read an article saying BTC slipped because traders started pricing in a higher chance of another Fed rate hike before the inflation data comes out. My basic understanding is that higher rates usually make risk assets less attractive, but I still don’t get how that should affect the way people trade and think of BTC.
I have a long term position and sometimes run grid bots as moving sideways on bydfi. If the Fed keeps hiking, does that mean I should sell some and hold more cash? I just want to know whether rate hikes would change trading and holding strategy.