Crypto markets plunged Friday morning after the release of federal data showing U.S inflation accelerated in May.
Consumer prices increased in every category measured by the Bureau of Labor Statistics, bringing year-over-year inflation to 8.6%, the largest 12-month increase in 41 years.
The CPI data was released at 8:30 a.m. ET – moments later, the price of the largest cryptocurrencies by market capitalization plunged.
Bitcoin was trading at $30,150 at 8:29 a.m., according to data from CoinGecko. Two hours later, it stands at $29,308 – a 2.8% drop.
Ethereum was just above $1,779 at 8:29 a.m. By 10:30 a.m., it had dropped 2.8% to $1,729.
Major altcoins like Cardano, BNB, XRP and Solana also fell by 5.4%, 0.2% 3.3% and 3.6% respectively.
The crypto sell-off mirrored drops in the broader markets as crypto continues to be highly correlated with equities.
The Dow Jones Industrial Average, the S&P 500 Index and the Nasdaq Stock Market are each down between 2% and 3.5% Friday morning.
Curiously, Bitcoin is outperforming stocks this morning and has remained resilient in recent weeks as its share of the overall crypto market cap continues to rise.
Bitcoin dominance stands at 47%, a level last seen in October 2021.