A false report about a potential tariff change sent shockwaves through financial markets, including a dramatic Bitcoin price swing. Let’s break down what happened.
The Fake News Flash and Bitcoin’s Jump
Around 10:10 AM ET, a rumor spread like wildfire: the White House was supposedly considering a 90-day pause on tariffs for all countries except China. This sparked a rapid rally in stocks and cryptocurrencies. Within minutes, the S&P 500 saw a massive jump in market capitalization – over $3 trillion! Bitcoin, trading around $75,805, surged about 7.2% to over $81,200 in a matter of minutes.
The Crash Landing
But the celebration was short-lived. Just seven minutes later, reports surfaced that the White House knew nothing about this supposed tariff pause. By 10:34 AM ET, the White House officially labeled the news “fake news.” The market reacted instantly. The S&P 500 lost almost $2.5 trillion in market cap – a breathtaking reversal. Bitcoin plummeted, losing most of its earlier gains, settling back around $77,560.
Analyst Reactions: A Mixed Bag
The wild swings sparked a flurry of reactions from crypto analysts:
- Optimistic Views: Some saw the volatility as a sign of sidelined capital ready to jump in on positive news, even if temporarily.
- Cautious Concerns:
Others warned about the risks of this extreme volatility, suggesting it could cause serious market disruptions. One analyst even pointed out that this correction could become one of the largest in the current Bitcoin cycle. - Uncertainty Reigns: Several analysts highlighted the unprecedented nature of the situation, emphasizing how a single tweet could cause such dramatic, instantaneous market shifts. The overall sentiment was one of uncertainty and concern about the fragility of the market.
A Global Perspective
Amidst the chaos, the European Union’s commissioner expressed a willingness to negotiate with the US on tariffs, suggesting a potential path toward stability.
Bitcoin’s Final Stand
At the time of writing, Bitcoin was trading at $78,824, still recovering from the rollercoaster ride. The entire episode underscores the significant impact of misinformation and the extreme volatility of the cryptocurrency market.
