A modest Bitcoin -Rally to a possible challenge of the $ 86,000 level quickly turned over the US afternoon trade on Wednesday when Federal Reserve -President Jerome Powell warned of the effects of President Trump’s customs regime.

“The level of the tariff increases so far is significantly greater than expected,” Powell said in a speech. “The same is likely to be the case with the economic effects which will include higher inflation and slower growth.”

In other words, stagflation-a setback to a significant part of the 1970s, when the United States experienced weak economic activity along with double digit inflation.

“We may be in the challenging scenario where our double mandatic goals are in excitement,” Powell continued.

The price of Bitcoin (BTC) fell approx. 2.5% in the minutes following the Powell remarks, which now traded at $ 83,700, with 1.5% over the last 24 hours.

US shares that had tried to mount a comeback from opening fall were also hit, Nasdaq dropped 3.4% to a low session.