- The market reacted swiftly to tariff pause rumors, with major indices and Bitcoin surging.
- Recession fears rise, but analysts remain optimistic about crypto’s resilience over traditional markets.
The broader market has been rattled by President Donald Trump’s tariff plan, and the crypto market has felt the impact as well.
Amidst this turbulence, recent rumors about a potential 90-day pause in tariffs sparked a glimmer of hope for market recovery.
Trump considers pause in tariffs — Fake or real?
On the 7th of April, a (now-deleted) post on X (formerly Twitter) by the “Walter Bloomberg” account sparked this speculation. The post cited an interview with Kevin Hassett, an economic adviser to Trump. The post read:
“Hassett: Trump is considering a 90-day pause in tariffs for all countries except China.”
Although the news was later proven false, it underscored the potential impact such a move could have on market sentiment. If it were to happen, it might trigger a market rebound.
How did the market react?
Unexpectedly, the markets responded swiftly to the now-debunked news of a potential 90-day tariff pause.
For those unaware, the S&P 500 surged over 8%, the Nasdaq climbed 9.5%, and the Dow Jones gained 7%, adding trillions to the stock market’s value in mere minutes.
Bitcoin [BTC] followed suit, spiking by 6.5% and briefly topping $80,000 before retreating.
However, the excitement was short-lived, as the White House “Rapid Response” account quickly dismissed the claim as fake news, triggering a market sell-off.
Additionally, Walter Bloomberg, the source of the misleading post, later confirmed the story was false, leaving markets to recalibrate once again.
“WHITE HOUSE SAYS 90-DAY PAUSE IN TARIFFS IS ‘FAKE NEWS’ -CNBC”
How did the community react to the fake news?
Although the rumor was quickly debunked, crypto YouTuber Lark Davis highlighted some key market insights during the episode.
He emphasized that the market eagerly embraces extended China trade negotiations as long as a resolution appears likely.
Davis also pointed out the market’s sensitivity, noting how even a minor 90-day tariff delay triggered a surge in stocks and cryptocurrencies.
He said,
“Now imagine dozens of deals happening with top players like India, Canada, and the UK. Shit tons of money are waiting on the sidelines, ready to ape in at a moment’s notice.”
Adding to the fray, another X user, Geiger Capital, noted,
Source: Geiger Capital/X
Aftermath of the fake news
Soon after the 90-day tariff pause rumor was retracted, Trump took to Truth Social, warning China of potential additional tariffs.
He said,
Source: Truth Social
Amidst this, analyst Eric Weiss expressed optimism about Bitcoin, highlighting its potential despite the ongoing uncertainty.
“As the tariff war escalates and stocks bleed, Wall St will eventually realize there’s an alternative: Bitcoin.”
Recession fears are rising, with prediction markets showing increased concerns. The chance of a U.S. recession in 2025 reached 64% on Kalshi and 61% on Polymarket.
These figures are a significant jump from 20% earlier this year.
Despite economic uncertainty and escalating trade tensions, optimism persists. Analysts like Kevin Capital suggest the crypto market might prove more resilient than traditional equities.
