News View Non-AMP

Fake Trump Tariff News Triggers Chaos in Crypto and Stocks

Published by
Vignesh S G

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.

US Market Swing: What Triggered It

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).

White House Denies the Report

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.

Market Recovers

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.

What Does It Mean for the Crypto Market?

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.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

Recent Posts

Charles Hoskinson Faces 318M ADA Scandal – Will It Stop ADA’s Rise to $1?

Just when Cardano, the decentralized blockchain platform, was seeing its native token ADA rising by…

May 8, 2025

60K BTC Wallets Tied to LockBit Ransomware Gang Leaked in Hacker Revenge

“Don’t do crime. CRIME IS BAD. xoxo from Prague.” That’s the message left behind after…

May 8, 2025

Solana Price Prediction 2025, 2026 – 2030: SOL Price Targets $500 Next?

Story Highlights Solana Price Today is . Solana coin price could reach a potential high…

May 8, 2025

Ripple XRP Price Prediction 2025, 2026-2030: Will XRP Reach $5?

Story Highlights The XRP Price LIVE: . The price could hit a high of $3.99…

May 8, 2025

Texas Bitcoin Reserve Bill Clears Key Vote, Final Decision Nears

A major crypto milestone just cleared another hurdle in Texas. Senate Bill 21 (SB 21)—which…

May 8, 2025

FED Policy Is Hurting Bitcoin, Warns Economist Timothy Peterson

Economist Timothy Peterson believes Bitcoin’s price is being held back by poor decisions from the…

May 8, 2025