The cryptocurrency market took a nosedive Thursday

Bitcoin and its digital cousins felt the heat after President Donald Trump dropped a surprise tariff bombshell that rattled investors worldwide.

Cryptocurrencies took a downturn on Thursday as President Donald Trump’s surprise announcement of tariffs sparked reactions among investors.

During a dramatic address from the White House Rose Garden on Wednesday, Trump unveiled sweeping tariffs of 10% on a broad range of imported goods, with even steeper levies for countries he claims engage in “unfair trade practices” with the U.S. The news initially sparked a flicker of optimism in the markets, with U.S. stocks and cryptocurrencies briefly surging. But that hope was short-lived.

As dawn broke on Thursday, reality hit hard—these tariffs were more aggressive than Wall Street had expected, leading to a downturn in the markets.

Bitcoin, which had been holding strong above the $87,000 threshold, took a 5% hit, sliding below the $82,000 level. The world’s leading cryptocurrency was seen trading at $81,691 by 03:08 ET (07:08 GMT).

The second-largest cryptocurrency, Ethereum, also dipped on Thursday, falling below the $1,800 mark to trade at $1,791. Meanwhile, Ripple’s XRP managed to hold onto gains despite a 7% drop, now changing hands at $2.02.

Amid the market chaos, MicroStrategy’s Michael Saylor attempted to inject some positivity with a bold statement on X, formerly known as Twitter.

“There are no tariffs on Bitcoin,” Saylor asserted in a post that has since garnered over 1 million views and sparked a lively discussion among investors.

However, his comment, meant to be reassuring, only fueled a flood of skeptical replies. Investors descended on his post with questions like, “Point out the bright side while the price is dumping … why?”

Saylor’s firm, MicroStrategy, has become a major player in the Bitcoin space, having begun accumulating the cryptocurrency in 2020. Just last month, the company announced a substantial $2 billion acquisition of Bitcoin, purchasing 22,048 BTC to add to its existing holdings.

As of Thursday, MicroStrategy holds a total of 528,185 Bitcoins, valued at approximately $35.63 billion in fiat currency.