Crypto News- The Power of Rumors: How Fake News Moved Global Markets
Crypto News– A recent fake news story regarding a potential 90-day pause in tariffs by U.S. President Donald Trump sparked a significant market reaction, showing the potential for a strong market rebound should such an announcement occur for real.
On April 7, a post from the verified “Walter Bloomberg” account on X (formerly Twitter) falsely claimed that President Trump was considering a 90-day pause on tariffs, excluding China. This post cited an interview with Kevin Hassett, an economic advisor to Trump. The claim quickly spread after being mistakenly aired by CNBC and amplified by Reuters, causing a massive market response. The S&P 500 jumped over 8% from its lows, the Nasdaq surged by 9.5%, and the Dow Jones rose by 7%, adding trillions to stock market valuations. Even Bitcoin saw a 6.5% increase, reaching over $80,000 before pulling back.
Market’s Readiness for Positive News
Although the White House swiftly debunked the claim as fake news, the episode revealed important insights into market behavior. Crypto YouTuber Lark Davis pointed out that the markets seem primed to react positively to any progress in trade negotiations, especially with major players like India, Canada, and the UK. “The market is ready to ape,” he said, emphasizing how even a baseless rumor about a 90-day delay caused a massive market spike.
What Happened During the Hassett Interview
In the interview that triggered the false rumor, Hassett was asked whether Trump might consider pausing tariffs. He gave a non-committal response, stating that it would be up to the President to decide, and noted that trade impacts were a small portion of the overall economy. However, shortly after the fake news spread, President Trump took to his social media platform, Truth Social, to threaten additional tariffs on China, signaling a potential escalation in trade tensions.
While the fake news was quickly disproven, the market’s strong reaction highlights the sensitivity of global financial markets to news about trade negotiations and tariffs. Investors should stay alert for genuine updates on trade policies, as the market is clearly ready to react to any positive moves, potentially leading to substantial gains.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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