Bitcoin And Stocks Fell After The News Of A “90-day Tariff Pause” Turned Out To Be False

The value of Bitcoin and stocks fell again after a brief period of positive outlook after the White House confirmed that the news about a 90-day tariff pause was fake. There were rumors on X that US President Donald Trump was contemplating bringing a 90-day pause on implementing the proposed trade tariffs on other countries. The prices of Bitcoin and various stocks rose in reaction to this news, with Bitcoin crossing the $80,000 mark. 

After the White House’s confirmation of the veracity of the news, the US equities dropped more than 3%, wiping more than $2 trillion in value on the market open. The S&P 500 index dropped by 2.79% to enter a bearish phase. The index is currently lower than its all-time high price by 20%. 

The Asian stock markets were the most affected with many Asian countries seeing a downfall of their stock trading indexes falling to an all-time low. For instance, Hong Kong’s equity index dropped by nearly 13%, further worsening its status. Major indexes in Shanghai, Taipei, and Tokyo also saw sharp declines, ranging from 7% to 10%.

Bitcoin Experiencing Whale Activity Despite It Hitting A Yearly Low

Even though Bitcoin prices are tumbling to a yearly low due to Trump’s thoughtless implementation of trade tariffs, there is a positive trend regarding the accumulation of these assets by crypto whales. Whales are investors who hold more than 10,000 Bitcoins. Whales are accumulating Bitcoins that the small investors are selling off. This is the first time that Bitcoin has experienced such intense whale activity after August 2024. 

Wheel holders are confident about the chances of Bitcoin’s price rise and are therefore buying the dip. The Accumulation Trend Score for Bitcoin whales briefly hit a perfect 1.0 around April 1, signaling a 15-day buying spree. Even though the Accumulation Trend Score has come down to 0.65, the buying trend has not been affected.

Meanwhile, smallholders of Bitcoin are continuing the distribution of their holdings. For smallholders holding less than 1 BTC to 100 BTC who are on a selling spree, the Bitcoin Accumulation Trend Score has dropped to 0.1-0.2. Historically, such whale demand for Bitcoins has resulted in their price recoveries. Market analysts are seeing this growing demand for Bitcoin as a precursor to its price recoveries. 

Also read: Analysts Claim Bitcoin On The Verge Of Largest ‘Price Drawdown’ Of The Bull Market: Can BTC Stay Above $70K?

The Bottom Line

Trump’s trade tariffs and related news have been causing havoc to the global financial markets, with the crypto and the stock markets being the worst affected. The market trends fluctuate with stability being a goal far from reaching. The news regarding a 90-day pause in the implementation of trade tariffs was welcomed by the market, which resulted in a temporary gain in the market, only to be reversed after the news came that these were just rumors. This incident shows how the global financial market is intertwined with the political and commercial developments in countries such as the USA.