#us consumer price index cpi

[monicascot]

Weekly Overview: Chinese data still not convincing as to a recovery

In today's video, we'll be diving into some crucial topics impacting the global economy. We'll start by discussing the recent US Consumer Price Index (CPI) data and its implications for the Federal Reserve's interest rate decisions. Then we'll shift our focus to China, examining the concerning signs of a slowdown in their post-COVID recovery. Additionally, we'll explore the economic situation in New Zealand, which has entered a recession.

[bitchesgetriches]

More on inflation:

They’re Lying to Us About the True Causes of Inflation 

[collapsedsquid]

It starts with the simple question of top-line price. There’s a funny caveat in the method the Bureau of Labor Statistics uses to determine the cost of smartphones for its Consumer Price Index. Smartphones, like a lot of other things, have been getting more expensive. They’re not eggs or gas or Coke — you don’t think about their prices every week — but there’s a good chance you buy one every few years. The cheapest version the iPhone now starts at $800; the cheapest version of the flagship model, $1,200. Let’s venture to say that people have noticed this and do not love it. Since 2018, though, BLS economists have specified that, actually, due to the “rapid rate of technological advancements and improved quality to consumers,�� including, as an example, increases in screen resolution, smartphones need a “hedonic quality adjustment” before inclusion in the CPI. As a result, smartphone prices have been recorded, in an official way directly relevant to debates about the economy, as going down. Makes sense, maybe. Feels wrong, definitely.

Is funny to ocnsider this a "hedonic" adjustment, today's smart phones are in many ways superior goods to the smartphones of 10 years ago, it's the fun level that hasn't changed or even decreased.

[crazy-pages]

They do measure inflation based on the most commonly purchased goods like bread and eggs, not just consumer goods in general. It’s called the market basket, and it’s what the consumer price index, the most common measure of inflation, is based on.

(Sending this as an ask because it’s not the main point of the reblog chain.)

Yes...

The consumer price index does have subsets based around certain good categories, and it assumes that certain consumer goods like bread and eggs make up a certain fraction of consumer purchases. It is a weighted average, not just a naive average and I might not have made that clear.

But...

These subsets are not actual measurements of what people are literally taking out of the store in their grocery baskets. They are weighted averages of groups of goods which represent reasonable mock-ups of the kinds of things people typically purchase. The weighted averages do not change to reflect changes in purchasing habits in real time.

If people start eating more eggs because eggs are relatively cheap, and the price of eggs increases dramatically, the CPI will not accurately model the actual increase in food cost borne by people. If people stop consuming certain luxury foods and those luxury Foods drop in price to compensate, the CPI will actually register that as driving inflation down. Which is what's technically happening ... but if you think that represents anything positive for people's living situations and economic anxiety, I have a bridge to sell you.

The CPI is also is not an economic measure which contains information about how much food people are purchasing or the strain their food budget puts on their finances. So if CPI inflation goes up very high and then stabilizes, the CPI will not tell you if people handled the price increase well, or if they are outright buying and consuming less food to compensate.

So...

In other words, the CPI is good for creating a simple model to capture general trends in food price during normative periods where people's eating habits remain constant. It is an inadequate model for understanding economic stresses in highly non-normative periods during which consumption habits change rapidly, let alone the psychology of how people respond to that.

This is not to say the CPI cannot still be useful in such times, only that we must be careful how we use it. For example-

This still uses the CPI food index to capture food price information. But you will note that measured spending on food (adjusted for a general measure of inflation) remains relatively stable, while the CPI food index (again adjusted to be relative to a general measure of inflation) skyrockets. If the CPI food index was actually an accurate measure of what people are buying during this period of time, those two values would be matched. They are not.

What this tells us is that there is a substantial change in consumer purchasing habits from more expensive to less expensive food stuffs and/or towards buying less food in general, in a way that the static CPI food basket is not capturing.

Now there's two ways for the CPI to deal with this, but both of them represent flaws in trying to use the CPI to capture economic stress information. First, the CPI can of course just choose to continue using its existing weighted average. This would contain information about price increases of the things people used to buy in the proportions they used to. This is useful, but means you're missing out on the reality of what people actually buy now. If the food basket gets too out of date, the CPI measure of inflation might even become completely incorrect.

Second, the CPI could renormalize the food basket so its ongoing measures of inflation reflect the actual reality of consumers. But this would be burying information about the extent to which price increases forced behavioral changes, which is just as much a measure of economic stress as net expenditure changes. Either way it is an insufficient measure of financial stress during times of rapid changes in patterns of consumption.

The CPI in the context of other measurements is valuable, but is inadequate in its own right. And to fully capture quantitative measurements of economic food stress, you would need to use more detailed economic measures. These would be things like what fraction of people's budget is made up by food (food burden), and more subjective measurements like asking people about the degree of financial pressure they feel at the grocery store or how constrained they feel by grocery prices.

A better measurement of the economic anxiety people experience in response to rising food prices would then not be comparing the CPI and wages, but identifying value classes of food and their proportional consumption, or comparing a recent average of temporal variance in CPI food index prices with a recent food basket as a percentage of after-cost-of-living spending budgets. You know, the things people actually experience economic anxiety through, eating cheaper food and fretting over if they'll be able to pay the bills next month.

[centfx]

Centfx

The price of gold surges before Fed Powell's speech

During Tuesday's early European session, the US dollar (USD) is declining, which helps the gold price (XAU/USD) gain momentum. As speculators increase their wagers that the US Federal Reserve (Fed) would lower interest rates in September in response to weak US job data last week, the downside for the precious metal may be contained. Furthermore, the cautious attitude among the geopolitical tensions in the Middle East and political unpredictabilities in France could raise the price of gold, a classic safe-haven asset. However, the People's Bank of China's (PBoC) decision to forgo buying gold for a second consecutive month in June may push down gold prices. Gold dealers will keep an eye on Fed Chair Jerome Powell's semi-annual testimony before the Congress, in addition to the remarks made by Michelle Bowman and Michael Barr of the Fed. The US Consumer Price Index (CPI) inflation figures will be the main focus on Thursday.

centfx #forexknowledge #forexlife #forexlondon #forexcommunity

[mightyflamethrower]

Joe Did That: Inflation Costs Americans an Extra $1000 Monthly

CATHERINE SALGADO | 5:14 PM ON APRIL 12, 2024

Thanks to the wonders of Bidenomics, the average American is spending over a thousand dollars extra a month. Fortunately, Biden is focused on important things — like funding jihad supporters in Gaza and paying off student loans with taxpayer money the government cannot spare.

Fox Business highlighted the $1,069 cost increase compared to three years ago before Joe Biden’s disastrous economic policies drove up inflation higher than Hunter Biden smoking Parmesan cheese. Inflation has allegedly fallen since 2022, but the context for that statement is that inflation is still rising, just at a supposedly slower rate — inflation went up about 18% under Biden. You still have to shell out more money for the basic costs of living than you did two or three years ago, which is why Americans are increasingly burdened with credit card debt.

As of February, two-thirds of full-time American workers said that their income had not kept pace with inflation. Real wages have been steadily dropping since Biden took office.

From Fox Business:

The typical U.S. household needed to pay $227 more a month in March to purchase the same goods and services it did one year ago because of still-high inflation, according to calculations from Moody's Analytics chief economist Mark Zandi shared with FOX Business. Americans are paying on average $784 more each month compared with the same time two years ago and $1,069 more compared with three years ago, before the inflation crisis began… when compared with January 2021, shortly before the inflation crisis began, prices remain up a stunning 18.94%.

Food, child care, and rent — the necessities — are devastatingly expensive under the Biden administration. Fox quoted Bright MLS chief economist Lisa Sturtevant, “Inflation has not just stalled, but it is moving in the wrong direction.” Unfortunately, low-income Americans — those who can least afford to spend more — are of course hardest hit by rising costs.

The Consumer Price Index (CPI), which measures the costs of what is supposed to be a representative “basket of goods,” continues to be well above the rate that the U.S. had before the economically damaging COVID-19 pandemic, Fox explained. The necessities mentioned above (food, rent, child care) are significantly more expensive than they were just a year ago. 

“Housing and gasoline costs were the biggest drivers of inflation last month, accounting for more than half of the total monthly increase,” Fox added. Food and auto insurance costs also went up, with the latter at a sobering 22.2% increase over the same time in 2023. Inflation is causing Americans to use up savings and increasingly rack up credit card debt to meet expenses, a situation that is both risky and unsustainable.

Credit card debt in America reached a new record high by the end of December 2023, Fox Business noted, citing data from the New York Federal Reserve.

Bidenomics has been nothing but a catastrophe for ordinary Americans, costing them ever more money even as their real wages decrease.

[freetheshit-outofyou]

Wow Cat, entitled much? College is not a guarantee to a "comfortable living". It's a path chosen by the user in hopes of turning that sheep skin into a livelihood that pays well. It isn't always the end result and 9 times out of 10 it's because the person who went to college didn't take into account what the degree's median pay would be. I can't tell you how many times a person has sat across from me and said something to the effect of "I have "X" degree and that should be worth something more, something extra." When I asked them what the median wage of that degree is their eyes would glaze over and there head would tilt like a puppy with no answer. It's because these people never looked into what their chosen degree path COULD MAKE, they just assume the sheep skin means more money. WRONG. Let's take Cat here as an example: Cat is going to graduate with a degree in Political Science and Geography, you know two of the 7 Social Science degrees (History, political science, geography, economics, psychology, sociology, and anthropology.) and 4th in line or middle of the road when it comes to money making degrees.

Per a Georgetown University study, her chosen degree paths starts at about 33k a year with a median wage of 60k a year, but she wants to start at 50k, because college reason. Now lets get to her inflation argument that bypasses huge things to make her argument work like the Consumer Price Index and the actual inflation rate. Cat was born in 2002, not 1982 so she knows shit about living in the 80's or the 70's. In 1980 the inflation rate was 13.9% in 1981 it was 11.8%, for the first 19 years of her life the highest inflation rate that her parents, not her, had to deal with was 4.3% in 2008. 2002's was 7.5% and 2023 6.4%, Guess what happened in 2022, our government went on a spending spree that has not stopped. The average inflation rate for her entire life is 2.3%. (All of the parentage are based of January numbers for each year rather than the highest or lowest for the entire year. Years like 2009 and 2015 where inflation rates were in negative percentages I made them zero %.) Side note: before 2009 you have to go back to 1955 before you find negative inflation rates again. From 1970 to 1990 the average inflation rate was 6.8285714285714%, just shy of 3 time higher than what she is complaining about, and her folks did it on a lower wage. Enter the Consumer Price index. From 2002 to today in 2023 the average Consumer Price Index (CPI-U) is 2.5304347826087%, and from 1970 to 1990 it was 6.2714285714286%, you guessed it, almost 3 times higher again. Of course the governments reckless spending and financing wars all over hell in back has started impacting EVERYONES bottom line, Cat is apparently just learning this. Cat, you need to earn a comfortable living, not have it handed to you. You need to work your ass up from the starting line not start closer to the top. It's not a Boomer, Gen X, Gen Z or what ever else is out there thing, its a you have never worked in your field thing, you just might suck at it thing and employers are not going to pay you on the work you might be able to do or the work ethic you might have, they are going to pay you as an employee that has limited work history, get used to it. I was born in 1970 got my first job, one of only 3 I ever had, in 1986. I did not earn over 41k a year until 2009, that was with a family of 4. Between my Bride and I we earned 4 1/2 degrees and took on no debt. How did we do it, work and save, living within our means and a budget. Guess what effects us much less becasue we pay cash for things, inflation. Not holding debt frees you up to do so many more things with your cash on hand. It's was less about inflation, although that is killing just about everyone now and more to do with piss poor advanced planning on Cat's part. Example: Had Cat looked into STEM degrees, you know a field short of female applicants, where the median starting yearly wage is 43k, with an expected yearly median wage of 76k per year, her outlook for earned wages would be much different. So, in short, Cat is pointing her anger at the wrong place, she shot herself in the foot taking on degrees with limited earning potential and in over saturated job markets rather than a more technical, less saturated job field that pays more all the way around.

“I think that if you go to college, you deserve to be able to make enough to live comfortably,” she asserts. “I think if you don’t go to college you should be able to make enough to live comfortably.” Comfortably, is relative to the person, and has more to do with, well comfort than economics. That's not how life works Cat. Maybe you should have paid a little more attention to those finance and economics classes.

[bitcoincables]

Bitcoin Price Plummets 77% in Asian Session, Triggering $200 Million in Liquidations

Bitcoin Price Crashes 77% in Asian Session, Sets Off $200 Million in Liquidations 😱

Bitcoin took a sudden nosedive during the Asian session, dropping 7.74% and briefly touching the $40,400 mark. This unexpected drop led to the liquidation of nearly $200 million worth of positions, causing significant market volatility. With the upcoming US Consumer Price Index (CPI) and the Federal Reserve's interest rate decision, high volatility is anticipated to continue.

Higher interest rates often have an adverse impact on the price of gold, as they increase the opportunity cost of holding the precious metal rather than investing in interest-bearing assets or depositing cash in a bank. Additionally, they generally strengthen the US Dollar, which in turn lowers the price of gold since it is denominated in dollars. It will be crucial to monitor the Fed's interest rate decisions and their implications on the price of Bitcoin.

Bitcoin is currently trading around $42,289, hovering around the midpoint of its 77% crash during the bear market. This price level is pivotal and may trigger significant take-profit or sell orders, which could result in market-wide liquidations. Market participants should remain cautious as the struggle between bulls and bears intensifies. It is worth noting that a major correction in Bitcoin price is not expected until it reaches the 62% retracement level at $48,733. However, today's movements could catch many overeager investors off-guard. The $50,000 psychological level may be a plausible area for market-wide profit-taking to occur.

Read the original article #Bitcoin #cryptocurrency #BitcoinPrice #marketvolatility

[monicascot]

Weekly Overview: Chinese data still not convincing as to a recovery

In today's video, we'll be diving into some crucial topics impacting the global economy. We'll start by discussing the recent US Consumer Price Index (CPI) data and its implications for the Federal Reserve's interest rate decisions.

[atlanticcanada]

'Nobody can live on that': Anti-poverty group disappointed with N.B. budget

An anti-poverty group in New Brunswick is disappointed with what it saw in Tuesday’s budget.

Organizers with the New Brunswick Common Front for Social Justice say they were let down by what they called a meagre raise to social assistance rates in the province.

Janelle LeBlanc, the provincial coordinator for the organization, said the extra $40 a month the Higgs government is pledging for people living on social assistance is nowhere near enough to cover the rising cost of living.

“In 2021, the social assistance rates in New Brunswick were the lowest in Canada and they are still some of the lowest in Canada,” said LeBlanc in an interview Wednesday.

“People who are deemed employable get $593 a month and people with disabilities get $792. Nobody can live on that. It’s under the poverty line. They live in extreme poverty.”

She says her group has been asking for social assistance rates to be raised to the poverty line.

“We were hoping that they would be raised a few hundred dollars, at least, and not just based on CPI [Consumer Price Index].”

The Higgs government tabled a $12.2-billion budget Tuesday that forecasts a small surplus and promises a funding boost to help stabilize the hurting health-care sector.

In a news release sent Wednesday, New Brunswick Common Front for Social Justice Community Co-chair Robert MacKay said people living on social assistance can't hold their heads above water.

“While the rates are indexed to the Consumer Price Index, it is not enough to cover basic necessities,” said MacKay.

The organization was also disappointed about the lack of investment in affordable housing.

LeBlanc said they expected the budget to have funding for additional social housing units because the waiting list for public housing has doubled between 2020 and 2022.

“Last fall, they made an announcement that we would get 380 social housing units. It’s the first time in 40 years the government is actually investing in social housing. That’s a great first step. We were just hoping to have extra investments in building social housing units,” said LeBlanc.

LeBlanc believes the lack of measures to help with the soaring cost of living is a big concern.

“I know some other groups are content with what’s in the budget, but for us, for poverty, there’s no permanent solutions to answer any of the social problems we have today,” she said.

“We’re disappointed. We’re going to continue working, continue meeting with ministers, continue meeting with MLAs and continue submitting documents to the government and organizing actions.”

LeBlanc called the budget a “missed opportunity” to introduce higher taxes on the super-wealthy and to improve living conditions for people struggling with day-to-day expenses.

With files from the Canadian Press

from CTV News - Atlantic https://ift.tt/rWXKogk

[bitchesgetriches]

Inflation is Not Created Equally

[principleofplenitude]

The official poverty measure is what’s sometimes known as an “absolute” poverty measure. Measures like this generally only adjust their thresholds for inflation. Many are based on less arbitrary numbers than “what people spent on food in 1955,” and many use different measurements of inflation, since a lot of economists think the Consumer Price Index overstates price increases compared to the Personal Consumption Expenditures (PCE) or chained CPI measures. But they fundamentally have a lot in common with the OPM’s approach: They set a dollar threshold for who is and isn’t poor and stick to it. Absolute poverty measures are crystal clear about what has happened to poverty since the 1960s: It plummeted. The below chart shows three different absolute measures, all of which use expansive income definitions, unlike the official rate. All three have fallen dramatically. The primary case for absolute measures like these is that they’re easy to interpret. Because the thresholds only change due to inflation, changes in the poverty rate only happen because people near the bottom get richer or poorer. If poverty falls, it’s because some low-income people gained more money or resources. If it increases, it’s because some low-income people lost out. Insofar as those kinds of material changes at the bottom are the main thing one cares about, absolute measures can be helpful. As a group of Columbia researchers argued in 2016, absolute measures are “more useful for establishing how families’ resources have changed against a fixed benchmark.” Applied to the US, the takeaway is that many fewer people are living on a very small amount of money than was the case in the 1960s. But many poverty scholars prefer to use what are called “relative” measures. Such measures set the threshold as a percentage of the country in question’s median income (usually 50 or 60 percent). Most rich countries other than the US define poverty in this way. The European Union, for instance, uses what it calls an “at risk of poverty” rate, defined as the share of residents in a country living on less than 60 percent of the median disposable income. The United Kingdom uses a “households below average income” (HBAI) statistic, with the main threshold set to 60 percent of median income. The case for relative measures is that poverty is socially defined, and “being in poverty” is usually thought of as people not being able to exist with the level of comfort that is normal in the society in which they live. A common definition, from the British scholar Peter Townsend, posits that poverty is “the absence or inadequacy of those diets, amenities, standards, services and activities which are common or customary in society.” Commonness or customariness are relative attributes, not absolute ones. Some, like sociologist David Brady, have also argued for relative measures on the grounds that they correlate better with self-reported mental and physical health and well-being. Looked at in relative terms, poverty hasn’t fallen in the US in recent decades. It’s stagnated.

“Why even brilliant scholars misunderstand poverty in America” from Vox

[a-path-beyond84]

First, I agree that the minimum wage ought to be raised from $7.25.

Note that almost no one is paid as low as $7.25 in 2025. Low end annual earnings for fast food workers for example are in the $22,000/yr context, closer to $11/hr for full-time work, with the median at $27,482 or about $13.75/hr.

The productivity argument actually isn't true, for two reasons.

First, the productivity number is calculating using a GDP price index, which has grown more quickly than the CPI, the price index for consumer goods. Relatively to a basket of goods consumers want to buy, productivity growth hasn't been as good as reported.

The other (and more important) piece is that this argument assumes that productivity growth in all jobs has been equal, yet this is not at all the case.

Is a fast food worker flipping 3x or 4x as many burgers per hour as his grandfather? Is the janitor cleaning 3x or 4x as many toilets per hour as his grandfather? Is the grocery store worker stocking shelves at 3x or 4x the pace vs. his grandfather? Of course not. These workers are probably about as efficient as those doing the same jobs 65 years ago, with perhaps some moderate gains in certain areas (e.g. by adding bar codes). Conversely, LeBron James brings in an order of magnitude more money than Wilt Chamberlain after adjusting for inflation, due to population growth, economic growth (higher willingness to pay to watch basketball) and globalization, and so basketball player productivity is almost certainly way above average productivity growth.

[coineagle]

Jerome Powell Labels Bitcoin as the New ‘Digital Gold’: An Incremental Approach in Progress

Key Points

Jerome Powell, U.S. Federal Reserve Chair, acknowledges Bitcoin’s potential as a store of value but rejects it as a dollar competitor.

Inflationary pressures and the Fed’s stance on rate cuts are posing challenges to the next Bitcoin rally.

Jerome Powell, the Chair of the U.S. Federal Reserve, has shown a change in his stance towards Bitcoin [BTC]. This shift has stirred a sense of optimism in the cryptocurrency market.

Powell’s Perspective on Bitcoin

In a recent conversation with Andrew Ross Sorkin at the New York Times DealBook Summit, Powell likened Bitcoin to gold. He stated that people use Bitcoin as a speculative asset, similar to gold, but it’s virtual and digital. However, he added that Bitcoin is not a competitor for the dollar due to its high volatility and limited adoption as a payment method.

Changpeng Zhao (CZ), the founder of Binance [BNB], praised Powell’s shift in stance, calling it an improvement to the previous narrative.

Macroeconomic Factors Affecting Bitcoin

The broader macroeconomic landscape is adding pressure to risk assets, including cryptocurrencies. The U.S. Consumer Price Index (CPI) report showed inflation rising to 3% in January, and the Producer Price Index (PPI) surged to 3.5%, its highest level since February 2023.

With mounting inflationary pressures and the Federal Reserve refraining from rate cuts, the expected crypto bull cycle seems to have encountered a hurdle. However, crypto prices showed resilience as the week ended, leading to speculation about potential market rebounds.

Powell’s firm stance against renewed Quantitative Easing (QE) and commitment to Quantitative Tightening (QT) has sparked discussions within the crypto community. His testimony on February 11th reinforced that the Fed would only consider QE under extreme conditions, such as near-zero interest rates.

Despite the challenges posed by inflation and rate cuts, Powell’s evolving view on Bitcoin as a store of value continues to inspire optimism. This leaves investors speculating on how future monetary decisions might shape the digital asset landscape.

[starseedfxofficial]

The Hidden Power of CPI and Genetic Algorithms: Next-Level Forex Trading The Secret Link Between CPI and Genetic Algorithms in Forex Trading Imagine trying to predict market trends based on the Consumer Price Index (CPI)—an economic indicator so powerful it can make or break entire economies. Now, combine that with genetic algorithms, a machine learning technique that mimics evolution to optimize strategies. Sounds like something out of a sci-fi novel, right? But here’s the kicker: this combination is already being used by elite traders to fine-tune their entries, exits, and risk management strategies with next-level precision. Let’s dive into the hidden mechanics of how CPI data and genetic algorithms can give you an unfair trading edge. CPI: The Hidden Market Mover You’re Probably Ignoring The CPI (Consumer Price Index) measures the change in prices of a basket of goods and services. It’s the go-to metric for central banks to adjust interest rates. Why does this matter for Forex? - When CPI is higher than expected → Central banks may raise interest rates → Stronger currency. - When CPI is lower than expected → Central banks may cut rates → Weaker currency. Yet, most traders only glance at CPI reports instead of deeply analyzing them. They miss the opportunity to front-run market moves by combining CPI trends with other data points. Example: Let’s say the U.S. CPI jumps by 0.8% in a month—higher than the forecasted 0.4%. The USD suddenly strengthens, catching most traders off guard. But an algorithmic trader using CPI trends combined with genetic optimization already positioned their trades hours before the release. What Are Genetic Algorithms, and Why Are They a Game-Changer? Genetic algorithms (GAs) are machine learning models inspired by Darwin’s evolution theory. Instead of using trial-and-error, GAs “evolve” over multiple generations to find the best trading strategy. How do they work? - Selection: The algorithm picks the best-performing trading strategies. - Crossover: It combines elements of successful strategies to create improved ones. - Mutation: It introduces small variations to explore new possibilities. - Survival of the Fittest: Weak strategies are eliminated, and the process repeats. This approach means that genetic algorithms constantly adapt, making them highly effective in volatile Forex markets. Example: A trader uses a GA to optimize their EUR/USD strategy. The algorithm backtests thousands of variations and evolves a strategy that performs 20% better than standard moving average crossovers. How to Combine CPI Data with Genetic Algorithms for a Killer Strategy Step 1: Gather and Analyze CPI Trends - Use a data provider like TradingEconomics or ForexFactory to track CPI trends over time. - Compare the CPI trend against central bank interest rate decisions. - Identify currency pairs that are highly sensitive to inflation (e.g., USD/JPY, EUR/USD). Step 2: Feed CPI Data into Your Genetic Algorithm - Create an algorithm that considers CPI deviations and their historical impact on currency movements. - Run thousands of backtests to refine the entry and exit criteria. - Optimize stop-loss and take-profit levels based on CPI volatility patterns. Step 3: Deploy and Optimize - Start with a demo account before going live. - Let the genetic algorithm evolve based on live market data. - Adjust parameters as economic conditions shift (e.g., post-pandemic inflation trends). Why Most Traders Fail (And How You Can Avoid It) - They rely on outdated technical indicators instead of combining economic fundamentals with AI-driven models. - They don’t optimize their strategies—trading is an evolving game, and if your strategy is static, you’re toast. - They don’t factor in CPI trends—meanwhile, hedge funds are making millions front-running CPI-based moves. If you want to trade like a pro, you need to start thinking like a quant. Final Thoughts: The Future of AI-Driven Forex Trading With inflation trends dominating global economies, CPI analysis is more critical than ever. Combine that with genetic algorithms, and you have a battle-tested strategy that continuously adapts to market shifts. 🚀 Want more insider tips on advanced trading techniques? - Get real-time economic indicators: StarseedFX Forex News - Learn cutting-edge Forex methodologies: Free Forex Courses - Join the elite trading community: StarseedFX Community —————– Image Credits: Cover image at the top is AI-generated Read the full article

[newsclickofficial]

Following the United States Consumer Price Index (CPI) data release, Bitcoin‘s price witnessed a rebound to the $98,000 level, raising investors’ hopes once again. However, this rebound was brief as BTC’s price began to drop a few hours after the upward move. As prices see bearish movements, crypto analysts believe that the drop could extend toward key support levels. Downside Risks Mounts For Bitcoin Bitcoin’s price action is under renewed pressure post-US CPI data release on Wednesday as revealed by a recent analysis by Negentropic, a market expert and co-founder of the world-leading on-chain data and financial platform Glassnode. The event appears to have sparked volatility for the flagship asset just as Negentropic previously predicted, which has fueled market uncertainty. During unfavorable conditions, Bitcoin is at risk of experiencing a price breakdown if it fails to hold key support levels. Negentropic highlighted that after an inflation report that was more intense than expected, BTC acquired liquidity at the $94,000 level and reached its top at $98,000. However, the crypto asset has currently retraced to the $96,000 mark. This development comes as BTC has seen declining network performance in the past few days. With weak liquidity coinciding with waning network growth, BTC’s short-term outlook signals bearish signs.  In the event that these negative trends persist, Negentropci is confident that BTC’s next move might be toward the downside, targeting the $92,000 threshold. As a result, the market expert has urged investors to stay vigilant amid these uncertain times. BTC’s liquidity and network performance declining | Source: Negentropic on X Daan Crypto Trades, a crypto analyst and investor has also delved into Bitcoin’s liquidity grab following the US CPI data report. According to Daan Crypto Trades, the majority of liquidity acquired by BTC was taken on the lower time frames. Furthermore, the expert outlined that after all these lower highs in the past few weeks, there is still a lot of untapped liquidity lying higher. Should BTC be able to reverse this local downward trend, it could serve as a trigger for a move to the upside. In the meantime, the $90,000 level is the danger zone where the analyst expects many longs to be taken out since it is the range low. Also, the level represents an area where Bitcoin’s price has witnessed a rebound several times. A Change In BTC’s Market Dynamics Even though BTC’s waning performance has caused minimal losses, CryptoQuant’s verified author Axel Adler Jr believes it is more logical to concentrate on the trend of profit changes rather than the amount of holder losses. During the last consolidation phase near $70,000, it took the market two more months to build a new impulse.  Meanwhile, market dynamics have shifted in the ongoing phase majorly influenced by news surrounding Donald Trump’s administration and recognition of BTC as a strategic reserve. “Essentially, this could significantly accelerate the development of a new trend, unlike in previous macrocycles,” Adler stated. BTC trading at $96,745 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Unsplash, chart from Tradingview.com