WASHINGTON D.C. – Federal Reserve Chairman Jerome Powell told the U.S. Senate Banking Committee on Tuesday that inflationary pressure is rising in a prepared statement. Powell’s comments sent bitcoin down 1.5%, below $22,000, while the S&P 500 dropped 0.75%.

The Fed had set a target inflation rate of 2% in its last Federal Open Market Committee (FOMC) meeting on Jan. 31, 2023, but the chairman now says that returning to that trajectory “has a long way to go and is likely to be bumpy.” 

Powell mentioned that data from January signaled “employment, consumer spending, manufacturing production, and inflation” were all partly to blame for the lingering inflationary pressure. 

Bitcoin has struggled to maintain a valuation upwards of $23,000 despite strong price rises across the market in January. The economic data suggests that the crypto winter remains ongoing.