On April 7, 2025, the market was in turmoil after false reports allegedly claimed that President Donald Trump was considering a 90-day suspension of global tariffs. The rumours were based on an interview with White House economic adviser Kevin Hassett, and cryptocurrency and stock markets surged before quickly turning the course back when the news was exposed.
Bitcoin, Ethereum and XRP all saw a sharp surge in prices. Bitcoin surged from under $76,000 to $80,818 within 35 minutes. Ethereum jumped from $1,486 to $1,608, while XRP rose from $1.76 to $1.97. Similarly, major inventory indexes such as the S&P 500, Dow, and Nasdaq have moved into positive territory after starting the day with losses. However, the rally was short and all markets were quickly corrected after the news was proven false.
The first report, amplified by major social media accounts and news outlets, mischaracterized Hassett’s comments in an interview with Fox News. Based on this information, Reuters put its headlines incorrectly saying that Trump is considering suspending tariffs, leading to an explosion of market activity. The news quickly spread on X (formerly Twitter), with major accounts like Walter Bloomberg and Zerohedge tweeting the information, sparking a massive response in the market.
Shortly afterwards, the White House responded, labeling the report as “fake news” and confirming that such policies were not being considered by CNBC. Fox News Clip did not mention the 90-day tariff suspension, and the White House made it clear that there is no official discussion. As news was uncovered, Bitcoin prices fell to $78,565, a 5% drop from the previous surge, but Ethereum and XRP also retreated from their highs.
Volatility has also been expanded to traditional markets. The SPDR S&P 500 ETF Trust (SPY) fell sharply, eliminating its value of around $2 trillion, and Nasdaq futures experienced a significant swing. Analysts say that much of the turbulence was caused by misleading reports, due to algorithmic trading and speculative positioning. The first rally, due to unverified news, was short-lived as the market was revised following the White House clarification.
The incident highlighted the growing influence of headline-driven transactions in social media and financial markets. He also highlighted the market’s sensitivity to rumors, especially when these rumors are related to important policy issues such as tariffs. The suspension of tariffs was by no means a serious consideration, but the dramatic market shaking exposed the risks of unverified information that are rapidly spreading in the digital age.