The cryptocurrency world erupted Monday as Bitcoin rocketed past $81,000, a sudden surge fuelled by whispers of potential U.S. tariff relief. Markets swung wildly as traders scrambled to digest unconfirmed reports of a White House policy shift, highlighting how fragile investor sentiment remains in today’s high-stakes economic climate.
Bitcoin Shatters $81k Amid Tariff Talks
Bitcoin blasted through the $81,000 barrier Monday, climbing 1.74% in under five minutes. The spike followed rumours that President Donald Trump might pause tariffs for 90 days on all nations except China. White House economic adviser Kevin Hassett reportedly hinted at the move during an interview, though details remained murky.
Before the surge, Bitcoin hovered between $76,000 and $78,000. By midday, it hit $81,203.39, a peak not seen in weeks. Analysts linked the jump to a parallel rebound in U.S. equity futures, with the S&P 500 leaping 7% minutes after the news broke.
A Five-Minute Hype
Traders watched in awe as trillions flooded risk assets. “Was the selling pressure this fragile?” questioned one crypto analyst on X. “Undone in seconds? Fascinating.” The rally, however, proved short-lived. CNBC soon reported White House staff had “no awareness” of a tariff pause, slashing Bitcoin’s gains.
By afternoon, prices stabilised near $79,000. Meanwhile, skeptics warned the rally relied more on speculation than fact. “Markets are hypersensitive to policy whispers, even unverified ones,” noted a market observer.
Fake News Fuels $2 Trillion Rally
Chaos deepened when a verified “Walter Bloomberg” X account falsely claimed Trump’s tariff pause was confirmed. Major outlets like CNBC and Reuters briefly amplified the April 7 post, sparking a $2 trillion stock market pump. The S&P 500 jumped 8%, while the Nasdaq surged 9.5% in an hour. Bitcoin mirrored the frenzy, climbing 6.5% to $80,000 before crashing back.
The White House swiftly debunked the rumour, calling it “fake news.” Yet the incident revealed a startling truth: investors are desperate for positive signals. “The market is ready to ape at any hint of progress,” said crypto YouTuber Lark Davis.
Analysts: Markets Primed to “Ape In”
Despite the false alarm, experts saw a silver lining. “Imagine if real deals emerge with India or Canada,” Davis added. “Trillions sidelined could flood in overnight.” Others speculated the fake news might embolden policymakers. “They now know a mere pause could trigger a 10% rally,” remarked X user Geiger Capital.
Meanwhile, Hassett’s actual interview offered little clarity. Asked about tariffs, he deflected, stating Trump would “decide what he decides.” He dismissed fears of economic “nuclear winter,” calling them “irresponsible rhetoric.”
Trump’s Tariff Threats Resurface
Hours after the rumour died, Trump pivoted to threats. On Truth Social, he warned China, “Withdraw tariff hikes by April 8, or face 50% U.S. duties.” The post dampened hopes of de-escalation, reminding traders that volatility remains inevitable.
Lingering Questions: Substance or Speculation?
Monday’s whiplash underscores a harsh reality: Markets now trade on headlines, not fundamentals. While Bitcoin’s rebound impressed, skeptics argue the rally lacked legs. “Until tariffs actually ease, this is just noise,” cautioned one trader.
Yet optimists counter that the frenzy proves pent-up demand. With billions waiting on the sidelines, even a hint of stability could unleash a sustained bull run. For now, though, investors brace for more turbulence and keep one eye on Trump’s next tweet.
What Comes Next?
As the dust settles, traders await official policy updates. Will Trump ease tariffs, or is this another bluff? Bitcoin’s sensitivity to geopolitical drama suggests every rumour could spark fireworks. For investors, the message is clear: Buckle up. The ride’s only getting wilder.
