The recent speech by Federal Reserve Chairman Jerome Powell on the state of U.S. inflation has sparked significant reactions across financial markets, with distinct narratives emerging for Bitcoin and Ethereum. As reported by Santiment on June 2, 2025, social media sentiment for Bitcoin shows a bullish tilt, with 1.3 positive comments for every bearish one, reflecting a strong public perception of Bitcoin as a hedge against inflationary pressures often discussed in Powell’s economic updates. This sentiment comes as Bitcoin’s price saw a notable uptick, rising from $67,800 at 10:00 AM UTC on June 2 to $69,200 by 2:00 PM UTC on the same day, according to data from major exchanges like Binance. Trading volume for BTC/USDT spiked by 18% during this window, reaching approximately 45,000 BTC traded, signaling heightened retail and institutional interest. Meanwhile, Ethereum paints a contrasting picture, with social media sentiment more balanced at a 1:1 ratio of bullish to bearish comments, per Santiment’s analysis. Ethereum’s price remained relatively stable, hovering around $3,780 at 10:00 AM UTC and slightly dipping to $3,760 by 2:00 PM UTC on June 2. This divergence suggests the crypto market is processing Powell’s inflation remarks through different lenses for these top assets, with Bitcoin gaining traction as a safe-haven narrative while Ethereum lags in immediate sentiment-driven momentum. The broader stock market context, with the S&P 500 gaining 0.5% to 5,280 points by 1:00 PM UTC on June 2 as inflation fears ease, further amplifies Bitcoin’s appeal as a correlated risk asset in times of economic optimism.

From a trading perspective, Powell’s comments on inflation, which hinted at a cautious but steady approach to monetary policy, have direct implications for crypto markets. Bitcoin’s price surge aligns with increased inflows into spot Bitcoin ETFs, with data showing a net inflow of $105 million on June 2, as reported by industry trackers like CoinDesk. This suggests institutional money is flowing from traditional markets into crypto, viewing Bitcoin as a hedge against potential long-term inflation despite short-term stock market gains. Ethereum, however, shows weaker momentum, with ETH/USDT trading volume on Binance only increasing by 5% to 120,000 ETH during the same 10:00 AM to 2:00 PM UTC window on June 2. This muted response could present a buying opportunity for traders anticipating a delayed reaction to macroeconomic optimism. Cross-market analysis indicates that while the Dow Jones Industrial Average rose by 0.3% to 38,200 points by 1:00 PM UTC on June 2, the correlation between stock market gains and Bitcoin’s price action remains strong, with a 30-day rolling correlation coefficient of 0.68 as of recent analytics from CoinGecko. Ethereum’s correlation with stocks is slightly lower at 0.55, suggesting it may not immediately benefit from stock market rallies but could see delayed upside if risk appetite continues to grow. Traders should watch for potential volatility in Bitcoin if stock market sentiment shifts, as sudden risk-off moves could trigger profit-taking in BTC.

Diving into technical indicators, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart moved from 55 to 62 between 10:00 AM and 2:00 PM UTC on June 2, indicating growing bullish momentum without entering overbought territory, as per TradingView data. The Moving Average Convergence Divergence (MACD) for BTC/USDT also showed a bullish crossover at 11:30 AM UTC, reinforcing the upward trend. On-chain metrics further support this, with Bitcoin’s active addresses increasing by 12% to 1.1 million on June 2, according to Glassnode, signaling robust network activity. Ethereum’s RSI, in contrast, remained neutral at 50 during the same period, with no significant MACD signal changes. On-chain data for Ethereum showed a modest 3% rise in active addresses to 550,000 on June 2, per Glassnode, reflecting less enthusiasm. Volume data across exchanges like Coinbase and Kraken confirms Bitcoin’s dominance, with BTC/USDT pairs accounting for 60% of total crypto spot volume on June 2, compared to ETH/USDT at 25%. The stock-crypto correlation remains evident as institutional flows into Bitcoin ETFs mirror stock market optimism, with BlackRock’s iShares Bitcoin Trust (IBIT) seeing a 15% volume increase to $500 million on June 2, as reported by Bloomberg. This institutional activity suggests sustained interest in Bitcoin as a macro asset, potentially driving further price gains if stock indices like the Nasdaq, up 0.6% to 16,800 by 1:00 PM UTC on June 2, maintain momentum. Traders should monitor these cross-market dynamics closely, as a reversal in stock sentiment could impact Bitcoin’s rally, while Ethereum may offer a contrarian play with lower volatility risk.

In summary, Powell’s inflation remarks have catalyzed a split reaction in crypto markets, with Bitcoin benefiting from both retail sentiment and institutional inflows, while Ethereum remains a slower mover. The interplay between stock market gains and crypto price action underscores the importance of tracking macro events for trading strategies. With Bitcoin showing stronger technical and on-chain signals, traders might consider long positions on BTC/USDT with stop-losses below $67,500, while Ethereum could be a candidate for accumulation if prices dip further below $3,700. The ongoing correlation with stock indices like the S&P 500 suggests that broader market risk appetite will continue to influence crypto trends, making real-time monitoring of both markets essential for informed trading decisions.