Bitcoin and traditional markets took a sudden dive Wednesday after President Trump’s unexpected announcement of planned 25% tariffs on the European Union, catching investors off guard and raising questions about market stability.

The world’s leading cryptocurrency plummeted below the $84,000 mark, shedding over 5% in just 24 hours as traders reacted to Trump’s tariff declaration during his first cabinet meeting. The announcement also sent shockwaves through traditional markets, with the S&P 500 quickly dropping to its session low.

“We have made a decision and we’ll be announcing it very soon. It’ll be 25 per cent,” the Financial Times reported Trump said.

The CoinDesk20 index, which tracks the broader digital asset market, followed Bitcoin’s downward trajectory, falling 2.3% on Wednesday.

The market reaction was particularly notable as it came just as some analysts had begun suggesting the recent sell-off might have reached its bottom. Trump’s surprise EU tariff plans appear to have extinguished this budding optimism, raising fresh concerns about the potential economic impact of renewed trade tensions.

Investors now face uncertainty about whether this dip represents a temporary setback or the beginning of a more prolonged market correction as global trade relations enter potentially turbulent territory.