Financial markets saw sharp swings on April 7th after an unverified rumor circulated that President Donald Trump was considering a 90-day suspension of tariffs. 

The speculation briefly lifted U.S. equities and Bitcoin before the White House denied the claim, prompting a broad market reversal.

The S&P 500, already in bear market territory after a 20% drop from recent highs, surged 6% before giving up most of its gains. It is now in positive and neutral territory, but investor sentiment remains cautious.

Bitcoin followed a similar pattern, jumping above $80,000 from a low of $74,457 before falling back to around $78,000. The decline followed a 6.5% drop over the weekend.

Asian markets also fell sharply amid rising global uncertainty. Hong Kong’s index dropped 13%, its worst single-day performance since the Asian financial crisis. 

Major indexes in Tokyo, Taipei, and Shanghai declined between 7% and 10%. Japan’s Nikkei 225 futures were briefly halted after hitting circuit breakers.

U.S.-China trade tensions added to the unease. President Trump confirmed plans to impose a 50% tariff on Chinese imports starting April 9th unless China reverses its own 34% tariff on U.S. goods by April 8.

Amid the downturn, on-chain data shows continued accumulation by large Bitcoin holders. 

Wallets with over 10,000 Bitcoin added more than 129,000 Bitcoin during a 15-day period beginning in late March, marking the most significant accumulation trend since August 2024. 

In contrast, smaller holders have shifted toward distribution. This activity suggests ongoing institutional interest despite short-term volatility and retail selling.

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