Bitcoin’s price experienced extreme volatility today amid false reports about U.S. tariff policies, demonstrating the cryptocurrency market’s heightened sensitivity to macroeconomic news. The ongoing tariff tensions have already wiped $1 trillion from the broader crypto market, making today’s wild price action particularly significant.
In a dramatic 30-minute span, BTC surged from $75,805 to $81,200 – a 7.2% gain – following rumors of a potential 90-day tariff pause by the White House. However, these gains evaporated just as quickly when the news was officially labeled as ‘fake’ by White House officials.
Timeline of Market Chaos
- 10:10 AM ET: Initial rumors of 90-day tariff pause emerge
- 10:15 AM ET: CNBC reports potential pause for all countries except China
- 10:18 AM ET: S&P 500 gains $3 trillion in market cap
- 10:25 AM ET: White House denies tariff pause plans
- 10:34 AM ET: Official ‘fake news’ declaration
- 10:40 AM ET: Markets reverse, erasing $2.5 trillion in value
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Expert Analysis and Market Impact
CryptoQuant’s Head of Research, Julio Moreno, noted that Bitcoin’s current drawdown has reached -26.62%, matching the severity of August 2024’s correction. This observation gains additional weight when considered alongside BlackRock CEO Larry Fink’s recent warning about a potential 20% market plunge due to the ongoing tariff crisis.
Market Implications
Crypto analyst Pentoshi highlighted a silver lining, noting significant sidelined capital ready to enter on positive news. However, Will Clemente III warned of potential liquidity issues, suggesting the current volatility could have broader implications.
FAQ Section
How did the fake tariff news affect Bitcoin’s price?
Bitcoin’s price jumped 7.2% from $75,805 to $81,200 before returning to $77,560 after the news was debunked.
What does this volatility indicate about market conditions?
The extreme price movement suggests high market sensitivity to macro news and significant amounts of sidelined capital ready to deploy.
How does this compare to previous market reactions?
This event caused unprecedented market volatility, with the S&P 500 experiencing its fastest-ever $3 trillion market cap swing.
At press time, Bitcoin trades at $78,824, with markets remaining highly sensitive to further developments in the ongoing tariff situation.