BTC Price Shock: False Trump Tariff News Triggers $74K to $80K Bitcoin Surge

Bitcoin price briefly climbed over $80,000 after a temporary market rally started by false reports. The fake news suggested that Donald Trump was considering pausing tariffs on all nations for 90 days, excluding China. Initial optimism spread through the cryptocurrency market as a result, causing a quick recovery from a sharp drop. However, the White House quickly denied the report, again fueling market uncertainty.

BTC price dropped to a low of $74,000 within the previous 24 hours and now stands at $79,648 due to broader market concerns that have heavily affected investor sentiment. Misinformation drove the rebound, showing the crypto market’s vulnerability to rapid shifts from unverified reports. Bitcoin’s temporary surge offered traders short-lived relief and showed the increasing impact of political events, whether true or false, on digital currency prices.

A Spike Built on False Hope

The sharp Bitcoin price surge occurred soon after fake tariff suspension reports were shared online. These false reports claimed that Trump was planning a 90-day tariff pause for most countries, excluding China. This perception triggered a risk-on sentiment among investors. As seen in chart 1, as a result, BTC price recovered from its $74,000 low and temporarily reached $80,000. This represented a gain exceeding 8% in under an hour.

Chart 1 – Published on TradingView, April 8, 2025.

The administration quickly denied the rumors, calling them false. Officials emphasized that Trump tariffs remain unchanged, particularly on China. Trump himself claims his tariff policies promote fairer trade and revive American manufacturing. The shifting crypto news caused a rapid reversal in cryptocurrency markets, erasing much of Bitcoin’s brief gains.

Market Reactions and Altcoin Movements

The fake tariff news affected more than just Bitcoin and sent ripples throughout the broader cryptocurrency market. ETH rose by 2.04%, reaching $1,567.92. SOL and XRP prices recorded gains of 4.88% and 4.69%. Dogecoin experienced the largest hourly jump among key tokens, rising 5.5%. Even BNB, often slower to react to short-term rallies, moved up 1.49%.

These altcoin movements signaled a temporary improvement in market sentiment despite the generally negative outlook. Nevertheless, the total crypto market cap still recorded a 4.27% decrease over the last 24 hours. This difference indicates the rally was reactive, not fundamental, with speculative actions increasing the impact of the false crypto news.

Economic Concerns Highlight Market Fragility

The cryptocurrency market attempted a modest recovery, but economic worries remained significant. Goldman Sachs released a cautious prediction pointing to increased recession risks even if tariffs are paused later. The investment bank mentioned tightening financial conditions, foreign consumer boycotts, and continuing policy uncertainty as reasons behind this forecast.

At the same time, data over the last 24 hours revealed that crypto trading volume has surged by more than 400%, despite the decline in market capitalization. The crypto fear and greed index also dropped sharply to 23, indicating extreme fear. These figures highlight the market’s fragile condition and show its increased sensitivity to both actual and fake news.

Lessons from a Misleading Bitcoin Price Surge

The brief BTC price rally, ignited by false tariff news, provides a warning for investors and market participants. This event shows how misinformation can quickly change asset prices in sentiment-driven environments like cryptocurrency. These situations mean traders must verify their information before acting on it, particularly in unstable markets.

Ultimately, while Bitcoin price temporarily rebounded, the incident clearly showed the crypto market’s vulnerability to fake news. Given that economic challenges continue and geopolitical tensions stay high, market stability will increasingly depend on accurate information and informed choices among investors.

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