Beyond Trumps Tariff War, Fake Rumors Trigger $100B Crypto Wipeout
- Trumps tariffs caused the worst market plunge since early COVID, but crypto showed surprising resilience compared to stocks.
- China retaliated with tariffs, Trump threatened more, and rumors caused a $100B crypto market wipeout on April 7th.
- Markets, especially crypto, are highly susceptible to news and rumors amid tariff uncertainty, despite decoupling beliefs.
The crypto and stock market is still reeling after Donald Trumps tariff bombshell last Wednesday. Market observers have collectively agreed on the worst plunge in crypto (or stock) values since the opening months of COVID-19 back in March and April of 2020. But what caught everyones attention were odd events on Monday, April 7th, with volatile prices being fueled by false rumors.
Bitcoin, in tandem with the financial market, fell over 8% in just a few hours, though it managed to hold compared to stock markets. This unexpected display of resilience made the crypto market look like an ideal investing playground as real-world firms struggled. Santiment has highlighted this decoupling, which became a major trending topic shortly after the initial stock market collapse on April 2nd and 3rd.
However, the macro chaos escalated after China retaliated with a 34% tax on U.S. products coming into their country. This move was seen as an attempt to counter Trumps new trade rules. In response, Trump issued a politically charged statement about imposing a crazy 104% tax on Chinese goods. He also pressured the Fed to cut rates in response. The slow-moving Fed should cut rates!
Trump: Trading in the Age of Uncertainty
Amidst this, one thing is clear: the events around April 7th clearly showed how both stock and crypto markets are increasingly becoming susceptible to news headlines, especially during uncertain times. A few rumors wiped out over $100 billion from cryptos total market within 30 minutes.
For newbie crypto traders, this could be a lesson in how Bitcoin, Ethereum, and other coins are heavily affected by traditional finance, politics, and even rumor-driven media cycles. This is ESPECIALLY true if the retail crowd begins pushing forward a belief that crypto has decoupled from global stock markets, Santiment wrote.
As one moves further into April, its clear that markets will continue to be heavily influenced not just by tariff decisions but also by how quickly (and accurately) the media reports them.. Remember that crypto markets will particularly continue to move the opposite direction of the crowds expectations while prices are being so driven by speculation of tariff policies that none of us have any control over.
Read more: https://www.tronweekly.com/trump-tariff-fake-rumors-crypto-wipeout/
Text source: TronWeekly
