Watching DXY and CPI for BTC's next move

It's been a fascinating week watching the market digest the latest CPI print. The slightly hotter-than-expected number, coupled with the Fed's continued hawkish rhetoric, has given the DXY a bit of a bid. We've seen a noticeable softening in risk assets, and $BTC, as expected, has felt the pressure. My general thesis for Bitcoin remains that it's highly sensitive to liquidity conditions, and right now, those conditions are tightening. The narrative shift from 'transitory inflation' to 'higher for longer' on rates is a significant headwind.

I'm particularly interested in how this plays out in relation to the upcoming jobs data. If we see continued strength there, it only gives the Fed more room to maintain their stance, which could keep the dollar elevated and put further downward pressure on $BTC. On the flip side, any cracks in the employment picture could signal a potential pivot down the line, which would be a game-changer for crypto and other growth assets. For now, my watchlist positioning is cautious; I'm not chasing rallies, but rather looking for clear technical setups and further macro confirmation before making any significant moves. The recent strength in $BABA today, for example, is interesting but I'm looking at it in the context of the broader market and not just as a standalone signal for overall sentiment.