Key Points
- Market reacts quickly to rumors of a potential 90-day pause in tariffs, causing a surge in major indices and Bitcoin.
- Despite rising recession fears, analysts maintain optimism about the resilience of cryptocurrency over traditional markets.
The global market has been shaken by President Donald Trump’s proposed tariff plan, and the impact has been felt in the cryptocurrency market as well. Amidst this turmoil, recent whispers of a possible 90-day halt in tariffs ignited a flicker of hope for market recovery.
Speculation Over Tariff Pause
On April 7th, a now-removed post on a social media platform by the “Walter Bloomberg” account sparked this conjecture. The post referenced an interview with Kevin Hassett, an economic advisor to Trump, and suggested that Trump was considering a 90-day pause in tariffs for all countries except China. Although this news was later debunked, it highlighted the potential influence such a move could have on market sentiment.
Unexpectedly, the markets reacted quickly to the now-discredited news of a potential 90-day tariff pause. The S&P 500 surged over 8%, the Nasdaq climbed 9.5%, and the Dow Jones gained 7%. Bitcoin [BTC] also increased, spiking by 6.5% and briefly exceeding $80,000 before falling back.
Market Reaction to Fake News
However, the initial excitement was temporary, as the White House quickly dismissed the claim as false news, leading to a market sell-off. Walter Bloomberg, the source of the misleading post, later confirmed the story was false. Despite the rumor being quickly debunked, the market’s response provided key insights. It was observed that the market is highly sensitive and even a minor 90-day tariff delay can trigger a surge in stocks and cryptocurrencies.
After the 90-day tariff pause rumor was retracted, Trump issued a warning to China about potential additional tariffs. Despite the ongoing uncertainty, analysts like Eric Weiss expressed optimism about Bitcoin, emphasizing its potential. Recession fears are on the rise, but analysts suggest that the crypto market might prove more resilient than traditional equities.
