The cryptocurrency market is bracing for significant turbulence as Federal Reserve Chairman Jerome Powell prepares to deliver a highly anticipated presentation, with market participants expecting extreme volatility in the interim period following the announcement. On May 7, 2025, prominent crypto analyst Michaël van de Poppe shared his insights on social media, cautioning traders about the potential for sharp price swings in the lead-up to and during Powell’s speech. He specifically highlighted that the real trading opportunities for major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are likely to emerge after the event, rather than during the volatile announcement period. His statement also hinted at the possibility of quantitative easing (QE) measures being introduced, which could have profound implications for risk assets, including cryptocurrencies. As of 10:00 AM UTC on May 7, 2025, Bitcoin was trading at approximately $68,500 on major exchanges like Binance, with a 24-hour trading volume of over $35 billion, while Ethereum hovered around $3,200 with a volume of $18 billion, according to data from CoinGecko. These levels represent a slight uptick of 1.2% for BTC and 1.5% for ETH over the past 24 hours, suggesting cautious optimism among traders. Powell’s presentation is expected to influence market sentiment significantly, especially if hints of QE or dovish monetary policies emerge, as these could drive institutional capital into risk-on assets like crypto. The stock market, particularly the S&P 500, which gained 0.8% to close at 5,250 points as of May 6, 2025, per Yahoo Finance, is also showing signs of bullish momentum that could spill over into crypto markets if Powell’s tone aligns with expectations of economic stimulus.

From a trading perspective, the implications of Powell’s speech are critical for both crypto and stock market participants looking for cross-market opportunities. Michaël van de Poppe’s advice to avoid trading during the announcement window due to extreme volatility is prudent, as historical Fed announcements have often triggered rapid price swings. For instance, during the last Fed rate decision on March 20, 2025, Bitcoin experienced a 3% drop within two hours of the announcement, only to rebound 5% over the following 24 hours, as reported by CoinMarketCap. This pattern suggests that the post-event period could offer clearer entry points for traders. If QE is indeed signaled, we could see a surge in institutional money flowing from traditional markets into cryptocurrencies, as investors seek higher yields in risk assets. Ethereum, in particular, may benefit from such a scenario due to its staking yields and upcoming network upgrades, with ETH/BTC trading pairs showing a steady uptrend of 0.7% as of 11:00 AM UTC on May 7, 2025, per TradingView data. Additionally, crypto-related stocks like Coinbase (COIN) and MicroStrategy (MSTR) could see correlated gains; COIN rose 2.1% to $225 on May 6, 2025, reflecting growing investor confidence in crypto infrastructure, according to NASDAQ data. Traders should monitor these assets for potential breakout opportunities if Powell’s speech confirms a dovish stance, while also preparing for downside risks if the tone remains hawkish.

Delving into technical indicators and volume data, Bitcoin’s Relative Strength Index (RSI) stood at 58 on the daily chart as of 12:00 PM UTC on May 7, 2025, indicating a neutral-to-bullish momentum, while Ethereum’s RSI was slightly higher at 61, per Binance charts. Bitcoin’s 24-hour trading volume spiked by 15% to $40 billion during the early hours of May 7, reflecting heightened market activity ahead of Powell’s speech, as noted on CoinGecko. On-chain metrics further support a cautious but optimistic outlook, with Bitcoin’s net exchange flow showing a decrease of 12,000 BTC over the past week, suggesting accumulation by long-term holders, according to Glassnode data accessed on May 7, 2025. Ethereum, meanwhile, saw a 9% increase in staked ETH volume, reaching 32 million ETH as of the same date, per StakingRewards. In terms of market correlations, Bitcoin’s 30-day correlation with the S&P 500 remains strong at 0.75, indicating that stock market movements post-Powell’s speech will likely influence BTC price action, as observed via CoinMetrics data on May 7, 2025. Institutional flows are also a key factor; if QE expectations are met, we could see significant capital inflows into Bitcoin ETFs like the iShares Bitcoin Trust (IBIT), which recorded a net inflow of $150 million on May 6, 2025, according to Bloomberg Terminal data. Traders should watch key BTC resistance levels at $70,000 and ETH at $3,300 in the hours following the speech for potential breakout or rejection signals.

The interplay between stock and crypto markets is particularly relevant in this context, as institutional investors often shift capital between these asset classes based on macroeconomic cues. A dovish Powell could accelerate risk appetite, pushing more funds into both tech-heavy NASDAQ stocks and cryptocurrencies, as seen in previous QE cycles. Conversely, a hawkish tone could trigger a risk-off sentiment, impacting both markets negatively. Monitoring volume changes in crypto markets post-speech will be crucial, as a surge in BTC and ETH trading volumes could confirm institutional entry. As of now, the crypto market cap stands at $2.4 trillion, up 1.3% in 24 hours as of 1:00 PM UTC on May 7, 2025, per CoinGecko, signaling resilience ahead of the event. Traders are advised to adopt a wait-and-see approach during the speech but remain agile for post-event moves.

FAQ:
What should traders do during Jerome Powell’s speech on May 7, 2025?
Traders are advised to avoid active trading during the speech due to expected extreme volatility, as highlighted by analyst Michaël van de Poppe. Focus on preparing strategies for post-event price movements in Bitcoin and Ethereum.

How might quantitative easing impact Bitcoin and Ethereum prices?
If quantitative easing is confirmed, it could drive institutional capital into risk assets like Bitcoin and Ethereum, potentially pushing BTC past $70,000 and ETH past $3,300, based on historical correlations with loose monetary policy and current market levels as of May 7, 2025.