XRP, the digital asset backed by Ripple Labs, suffered a sharp and sudden drop after a misleading social media post sent prices soaring, only to come crashing down minutes later. The cryptocurrency spiked to $2 on Binance earlier today after a popular X (formerly Twitter) account, Walter Bloomberg, published a headline claiming that the White House was considering a 90-day tariff pause.
The post, attributed to White House economic adviser Kevin Hassett during a Fox News appearance, quickly caught fire. CNBC picked it up shortly after, amplifying its reach. As a result, traders reacted instantly, driving both crypto and stock markets in a surge of speculative optimism.
However, there was just one problem—the statement was never made.
White House Disputes Viral Claim
Within the hour, the White House issued a public clarification through its official rapid response account, stating that the information was entirely false. Kevin Hassett had not mentioned any tariff pause during his Fox News interview, contradicting the viral post’s claim.
This correction sent markets reeling, with XRP experiencing the most dramatic fallout. After hitting $2 in a short-lived spike, the cryptocurrency quickly reversed direction and plummeted to $1.85. The news also affected broader market sentiment, lowering Bitcoin and other altcoins. However, XRP took a particularly hard hit due to the intensity of its initial rally.
Related article: XRP Under Pressure: Why Analysts Say It Might Be the Best Crypto to Short Right Now
Liquidations Surge as XRP Dives to $1.65
The volatility didn’t stop there. Earlier today, before the fake news incident, XRP had already dipped to $1.65 amid a broader global market sell-off. According to CoinGlass data, more than $82 million worth of XRP liquidations occurred within the past 24 hours. Significantly, long positions accounted for approximately $62 million, showing that many traders were caught off guard by the sudden downturn.
A Costly Lesson in Fake News
The incident highlights the fragility of cryptocurrency markets and how easily misinformation can trigger extreme volatility. Traders relying on real-time headlines must remain cautious and verify news before acting, especially regarding politically sensitive topics like trade policy.
XRP’s rollercoaster movement today reminds investors that in the world of digital assets, one tweet can change everything—and sometimes, it’s a tweet that never should have been posted in the first place.
