In a dramatic turn of events, XRP experienced a sharp spike followed by a sudden crash, all within minutes, after a misleading headline triggered a wave of speculative buying, only to be corrected shortly after.
The altcoin momentarily climbed to $2 on Binance, one of the world’s largest cryptocurrency exchanges, after a viral post falsely claimed that the U.S. government was considering a 90-day suspension of tariffs. The misleading information was attributed to White House economic adviser Kevin Hassett, allegedly during a segment aired on Fox News earlier in the day.
The Role of Social Media in the Misfire
The now-debunked headline was posted by Walter Bloomberg — a prominent social media account known for curating headlines from the Bloomberg Terminal. Given the account’s large following, the post gained traction quickly, even getting picked up by mainstream media, including CNBC.
Seems like originated on twitter
CNBC saw it, said they couldn't verify it but put the headline on the screen anyways
Reuters then flashed it citing CNBC
Cinema https://t.co/lyEq6x0o9u
— db (@tier10k) April 7, 2025
This misinformation had an immediate impact on global markets. Stocks and digital assets alike rallied on the back of what appeared to be bullish economic news. XRP was among the biggest beneficiaries, spiking aggressively as traders rushed to capitalize on the perceived development.
Official Response: “Wrong”
However, the euphoria was short-lived. The White House’s official rapid response team issued a public correction, labeling the viral post as inaccurate. In reality, Kevin Hassett had not mentioned anything remotely related to a tariff pause in his actual interview.
Wrong. Not only did Director Hassett not say this (clip below), @POTUS has been clear — "it all has to change, but especially with CHINA!!!" https://t.co/3Kvt8AScAZ pic.twitter.com/JHucHjZm3S
— Rapid Response 47 (@RapidResponse47) April 7, 2025
With the narrative exposed as false, markets reversed course just as quickly. XRP dropped sharply, falling from its $2 peak down to $1.85 within moments — erasing its earlier gains and throwing the altcoin into negative territory for the day.
Broader Impact and Liquidations
The price drop for XRP was even more dramatic considering that the token had already been under pressure earlier in the day. A global market downturn had pushed XRP to as low as $1.65 at one point, adding fuel to the volatility.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
According to data from CoinGlass, the ripple effect of this market chaos was massive: over $82 million in XRP positions were liquidated in the past 24 hours. A large chunk of these were long trades, with $62 million wiped out as bullish traders were caught off guard by the fake news-fueled whiplash.
The episode serves as a stark reminder of how sensitive the cryptocurrency market remains to news, especially when it originates from influential sources, even if later proven false. For XRP traders, the event marked a volatile rollercoaster of hope and disappointment, highlighting the need for caution in the face of fast-moving headlines.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
