US inflation triggers volatility in Bitcoin and Mexican peso

Higher-than-expected US inflation in September has triggered market volatility, impacting Bitcoin, mining stocks, and the Mexican peso. The Consumer Price Index rose 3.7% annually, exceeding the 3.6% market expectation, driven largely by a 9.1% increase in gasoline prices.

This inflationary pressure has renewed speculation that the Federal Reserve may raise interest rates, which typically strengthens the US dollar and reduces the appeal of riskier assets. Consequently, the US dollar reached its highest level of the year against the Mexican peso, hitting 18.4930 pesos.

In the cryptocurrency market, Bitcoin has seen a weekly decline of approximately 2.51%, trading around the $81,000 to $82,000 range. Market sentiment has shifted from ‘Greed’ to ‘Neutral’ as optimism cools. Additionally, major US-listed Bitcoin mining stocks experienced significant drops, falling between 18.8% and 23.3% during the week of October 12 to 16.