LTC and Cryptocurrencies React to Fake Tariff News: A Rollercoaster Ride
On April 9, 2025, Bitcoin and other cryptocurrencies, including Litecoin (LTC), experienced significant volatility due to a fake rumor about U.S. tariff policies. The rumor, which suggested a 90-day tariff pause for all countries except China, initially sparked a rally in risk assets, including cryptocurrencies. However, the White House quickly debunked the news, leading to abrupt price reversals. The Kobeissi Letter highlighted the rapid market reactions, noting that even traditional markets like the S&P 500 were affected. This event underscores the sensitivity of cryptocurrency markets to geopolitical rumors and the importance of verifying news before trading. Below is a detailed summary of the incident and its implications for LTC and the broader crypto market.
Bitcoin and Cryptocurrencies Volatile on Fake Tariff News
Speculation over a rumored White House plan to pause tariffs for ninety days on all countries except China caused markets, including Bitcoin and other cryptocurrencies, to experience abrupt price reversals. The rumor emerged at around 10:10 AM ET, initially sparking momentum in risk assets. However, the White House later deemed the news as ’fake.’ The Kobeissi Letter described the rapid sequence of events, noting that the S&P 500 had added over $3 trillion in market cap within minutes of the rumor’s emergence. Cryptocurrencies such as BTC, ETH, LTC, and others in the list experienced similar volatility.
US Plans to Raise Import Duties on Chinese Goods to 104%
The White House may announce a 104% duty on Chinese goods entering the country if the Xi Jinping administration does not drop the additional 34% tariffs on all US goods. The new increase in tariffs, which comes with 50% in addition to the already agreed duties of 54%, could take effect from April 9, 2025, if the announcement is made on Tuesday. China has vowed to ’fight to the end’ after President Trump threatened an additional 50% tariff. If the White House makes an announcement, the global stock market could react strongly and turn further towards the red. Cryptocurrencies, including BTC, ETH, LTC, and others, could also be affected by the market’s reaction to the tariffs.
South Korea’s Crypto Trading Volume Surges on False Tariff News
Trading activity on South Korean crypto exchanges saw a significant increase in volume after unverified reports claimed that the United States had suspended tariffs. The misleading news headline, which originated from a Fox News interview with the White House economic adviser Kevin Hassett, stated that US President Donald Trump was considering a 90-day pause on tariffs. However, Hassett’s actual response was vague and taken out of context. The fake news ignited the South Korean markets, causing a surge in trading for various cryptocurrencies including BTC, ETH, LTC, and others.
