On April 7, 2025, a false report about Trump considering a tariff pause prompted a brief market surge in cryptocurrencies and stocks, followed by a rapid decline once the news was debunked.
In an unexpected twist on April 7, 2025, markets faced wild swings after a false report suggested that President Trump might consider a 90-day pause on global tariffs. This rumor, stemming from comments made by White House economic advisor Kevin Hassett, stirred up both cryptocurrencies and stock markets, leading to a brief yet dramatic price surge before reality set in.
Bitcoin, along with Ethereum and XRP, felt the brunt of the speculation. Bitcoin went from a lackluster $76,000, soaring to nearly $80,818 in a frenzy lasting a mere 35 minutes. Ethereum experienced a similar leap, climbing from $1,486 to $1,608, while XRP jumped from $1.76 to $1.97. Major stock indices such as the S&P 500 and Nasdaq initially bounced back, but the highs were short-lived as the validity of the report unraveled.
The initial spark for the market frenzy was fueled by a mischaracterization of Hassett’s comments in a Fox News interview. Reuters picked up on this, running a misleading headline, which quickly spread across social platforms, notably X (formerly Twitter). Influential voices like Walter Bloomberg and Zerohedge helped amplify the excitement, igniting a buying frenzy that sent prices soaring.
However, the party didn’t last. Soon after, the White House firmly labeled the reports as “fake news.” CNBC confirmed that the administration was not considering any kind of tariff pause—drawing a sharp line under the earlier speculation. As the dust settled, Bitcoin’s price dipped back to $78,565, reflecting a 5% retreat from its peak. Similar retractions hit Ethereum and XRP as market confidence faltered.
This wave of volatility hit traditional markets hard, too. The SPDR S&P 500 ETF Trust (SPY) faced a steep decline, losing around $2 trillion in value, while Nasdaq futures exhibited erratic behavior. Analysts pointed to algorithmic trading and speculative moves as decisive factors in the dizzying market activity, indicating that such rapid reactions to headlines are risky—and worrisome.
This incident opens a window to the fragile nature of today’s markets, highlighting how social media and unchecked reports can easily whip up trading frenzies. While a tariff pause was never really on the table, the resultant market swings show how unverified information can lead to significant repercussions. The digital age is not just fast; it’s dangerous when rumors become reality before the facts do.
The April 7 false report about a potential 90-day tariff pause caused notable market volatility, affecting cryptocurrencies and stock indices dramatically. The incident points to the fragility of current market dynamics, driven heavily by social media and news speculation. As seen, the ramifications of unverified reports can be swift and severe, urging traders to remain vigilant.
Original Source: coinmarketcap.com
