On April 7, 2025, the markets were thrown into turmoil after a false report claimed that President Donald Trump was considering a 90-day pause on global tariffs. The rumor, based on an interview with White House economic advisor Kevin Hassett, caused cryptocurrencies and stock markets to surge before quickly reversing course when the news was debunked.

Bitcoin, Ethereum, and XRP all saw sharp spikes in their prices. Bitcoin surged from below $76,000 to a high of $80,818 within 35 minutes. Ethereum jumped from $1,486 to $1,608, while XRP rose from $1.76 to $1.97. Similarly, major stock indices like the S&P 500, Dow, and Nasdaq moved into positive territory after starting the day with losses. However, the rally was brief, and all markets quickly corrected once the news was proven false.

The initial report, amplified by major social media accounts and news outlets, mischaracterized Hassett’s comments in a Fox News interview. Reuters, based on this information, ran a headline that falsely stated that Trump was considering a tariff pause, leading to a burst of market activity. The news spread quickly on X (formerly Twitter), with major accounts like Walter Bloomberg and Zerohedge tweeting the information, causing a massive reaction in the markets.

Soon after, the White House responded, labeling the report as “fake news” and confirming to CNBC that no such policy was being considered. The Fox News clip did not mention a 90-day tariff pause, and the White House clarified that no official discussions had taken place. With the news debunked, Bitcoin’s price fell to $78,565, a 5% drop from its earlier surge, while Ethereum and XRP also retreated from their highs.

The volatility extended to traditional markets as well. The SPDR S&P 500 ETF Trust (SPY) saw a sharp drop, erasing about $2 trillion in value, while Nasdaq futures experienced a significant swing. Analysts attributed much of the turbulence to algorithmic trading and speculative positioning, which were triggered by the misleading report. The initial rally, driven by the unverified news, was short-lived as the market corrected following the White House’s clarification.

This incident highlighted the growing influence of social media and headline-driven trading in the financial markets. It also underscored the markets’ sensitivity to rumors, especially when those rumors concern important policy matters like tariffs. While the tariff pause was never a serious consideration, the dramatic market swings it triggered exposed the risks of unverified information spreading quickly in the digital age.