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The speculation over the purported White House policy to suspend tariffs on countries other than China for 90 days sent markets into frenzy today. This triggered price changes across stocks, bitcoin and cryptocurrency. After a rapid-fire of contradictory updates, this rumor first surfaced at 10:10AM ET. This sparked momentum for risk assets and eventually was deemed untrue. “fake news” White House
The Kobeissi letter (@KobeissiLetter). described The chronology of X is as follows: “What just happened? At 10:10 AM ET, rumors emerged that the White House was considering a ‘90-day tariff pause.’ At 10:15 AM ET, CNBC reported that Trump is considering a 90-day pause on tariffs for ALL countries except for China. By 10:18 AM ET, the S&P 500 had added over +$3 TRILLION in market cap from its low.”
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However, only seven minutes later, at 10:25 AM ET, reports emerged that the White House was ‘unaware’ of Trump considering a 90-day pause. “At 10:26 AM ET, CNBC reports that the 90-day tariff pause headlines were incorrect. At 10:34 AM ET, the White House officially called the tariff pause headlines ‘fake news.’ By 10:40 AM ET, the S&P 500 erased -$2.5 TRILLION of market cap from its high, 22 minutes prior. Never in history have we seen something like this,” The Kobeissi letter writes.
Just the suggestion that tariffs would be temporarily suspended shifted sentiment quickly in equity markets and cryptocurrency markets. BTC, trading at around $75,805 in the moment, surged roughly 7.2% and reached $81,200 in less than a 30 minute period. The gains vanished almost instantly after confirmation that a pause wasn’t planned. Bitcoin dropped to about $77.560.
Crypto observers were shocked by the sudden turn of events. Pentoshi, (@Pentosh1) stated that “The fake news tweet showed there’s a lot of sidelined capital at least for relief rally and the risk is to the upside on any positive news at least temporarily.”
Will Clemente III cautioned: “Bear take: Liquidity is bad and this volatility might break something. Bull take: This headline was the cointelegraph intern BTC ETF headline but for equities.”
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Julio Moreno – Head of CryptoQuant Research – remarked on this. “Bitcoin’s current price drawdown is about to become the largest of the current cycle,” He illustrated his argument with a graph that shows BTC’s corrective movement reaching -26.62%. This is the same as August 2024.
Macro analyst Alex Krüger (@krugermacro) invoked BlackRock’s CEO Larry Fink said that a further 20% drop in the market is possible. “That’s the thing. Under normal circumstances, probability of such scenarios or things such as stagflation are so low you can just brush them off. Trump opened up the left tail => anything is possible. We are one headline away from a 7% candle in either direction.”
Podcast host Felix Jauvin (@fejau_inc) agrees: “What’s so crazy about this crash vs other is its entirely self-willed and could be reversed in an instant on one tweet. Has there ever been anything like that?”
Ursula von der Leyen, European Union commissioner, stated that she was willing to find solutions in the middle of this turmoil. “Europe is ready to negotiate with the US,” Zero-for-zero is a possibility tariffs on industrial goods.
BTC is currently trading for $78,824 at the time of this publication.
Featured image was created with DALL.E chart by TradingView.com
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Source: www.newsbtc.com
