A false headline claiming that President Donald Trump would temporarily pause his tariff war with China sent both the stock and crypto markets into a frenzy. For a short while, prices soared. But when the news was revealed to be fake, the markets snapped back – fast.
It was a classic case of how powerful (and dangerous) headlines can be. Even Bitcoin, often seen as a hedge against traditional finance, moved in sync with Wall Street. Here’s what happened.
At around 10:15 AM (UTC-4) on April 7, a fake report began circulating, claiming that President Trump was planning to suspend tariffs on China for the next 90 days. The news caused an immediate spike in the stock market. The S&P 500 jumped to a high of $5,249.28, gaining over 3.36% between 9:30 AM and 10:30 AM.
The Bitcoin market reacted in a similar way. BTC prices climbed above $81,251 during the same time window, recording a rise of at least 2.79% between 9:30 AM and 10:30 AM (UTC-4).
Shortly after the rally, the White House stepped in and denied the claims. Officials strongly rejected the report and said there were no plans to pause the tariff policy against China.
This clarification led to a quick pullback in the markets. On the S&P 500’s 30-minute chart, a large red candlestick appeared at 11:00 AM (UTC-4), showing a drop from $5,076.52 to $4,956.34.
Bitcoin mirrored the move. During the same timeframe, BTC fell from $79,025.10 to $78,016.40.
Despite the volatility, both markets bounced back before the day ended. The S&P 500 closed at least 4.67% above its lowest point of the day—226.08 points higher.
Bitcoin also recovered. By the end of April 7, BTC had gained around 0.91%, closing about 6.24% above its daily low—roughly 4,652.13 points higher.
Investors Buy the Dip
The quick rebound shows that investors were ready to re-enter the market, even after a false alarm. Many seem to view price drops as buying opportunities.
Analysts believe current market movements are being driven more by sentiment than fundamentals. Similar to what happened in March 2020, oversold conditions are pulling money back into the market fast.
This event shows how closely Bitcoin and the broader crypto market are linked to global economic sentiment and traditional financial markets. The strong reaction to fake news highlights how sensitive crypto is to political developments.
But the swift recovery also shows that interest in crypto remains strong—especially when markets are volatile. As long as traditional assets keep reacting to news and emotions, crypto is likely to follow suit—bringing both risks and opportunities for traders.
Turns out, even a whisper of good news – or bad, for that matter – can send markets on a rollercoaster ride. Guess we’re all just along for the unpredictable twists and turns.
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