On April 7, 2025, a false report sent shockwaves through the markets, suggesting that President Donald Trump was contemplating a 90-day halt on global tariffs. This rumor, stemming from statements made by White House economic advisor Kevin Hassett, triggered a quick surge in both stock and cryptocurrency prices, only to reverse sharply once the claim was proven unfounded.
Bitcoin, Ethereum, and XRP experienced significant price increases, with Bitcoin jumping from just below $76,000 to a peak of $80,818 in 35 minutes. Ethereum rose from $1,486 to $1,608, while XRP increased from $1.76 to $1.97. Major stock indices, including the S&P 500, Dow, and Nasdaq, briefly entered positive territory after starting the day in the red. However, this rally was short-lived, as the markets quickly corrected once the rumor was discredited.
The initial report was amplified by prominent social media accounts and news organizations, misinterpreting Hassett’s statements during a Fox News interview. Reuters, using this information, published a misleading headline suggesting that Trump was contemplating a pause on tariffs, which ignited a wave of market activity. The rumor spread quickly on X (formerly Twitter), with influential accounts such as Walter Bloomberg and Zerohedge sharing the details, leading to a substantial market response.
Shortly after, the White House issued a statement denouncing the report as “fake news” and confirmed to CNBC that no such policy was under consideration. The Fox News clip did not mention any 90-day tariff suspension, and the White House clarified that there had been no official discussions on the matter. Following the clarification, Bitcoin’s price dropped to $78,565, reflecting a 5% decline from its earlier high, with similar retreats for Ethereum and XRP.
The volatility affected traditional markets too. The SPDR S&P 500 ETF Trust (SPY) faced a sharp decline, wiping out approximately $2 trillion in value, while Nasdaq futures also reacted significantly. Analysts attributed a large portion of this turbulence to algorithmic trading and speculative positioning activated by the misleading report. The initial upswing driven by unverified information was abruptly reversed following the White House’s clarification.
This episode emphasized the escalating impact of social media and headline-driven trading on financial markets. It also highlighted the market’s vulnerability to rumors, particularly concerning crucial policy matters such as tariffs. Although the notion of a tariff pause was never a serious possibility, the substantial market fluctuations it caused underscored the dangers of rapidly spreading unverified information in today’s digital landscape.
