Bitcoin Price Rises as the Market Remains Selective

Cryptocurrency News

6 min read time

|Updated: 2026-05-04

Bitcoin Price Rises as the Market Remains Selective

The crypto market entered May 4 with support from a strong recovery in Bitcoin ETF inflows, while weaker flows across Ethereum and altcoin products showed that market confidence remains selective. Capital moving into Bitcoin signaled that investors continue to prioritize the largest and most liquid asset, while continued outflows from Ethereum and limited activity across altcoin ETFs suggested that risk appetite has not yet broadened across the market.

At the same time, discussions around AI and quantum security, regulatory progress on stablecoin yield rules in the U.S., and Bitcoin miners’ shift toward data center revenues showed that structural transformation across the crypto ecosystem continues.

Market Context: Bitcoin Demand and Structural Change Take the Lead

Recent developments point to a market where Bitcoin is seeing a limited recovery, while broader sentiment remains cautious. Net inflows into Bitcoin ETFs show that institutional demand has not disappeared, but outflows from Ethereum and limited movement in Solana and XRP indicate that capital is not yet spreading across the wider crypto market.

The market agenda is also no longer limited to prices and capital flows. Solana co-founder Anatoly Yakovenko’s warning on AI and post-quantum cryptography highlighted the need to reassess long-term security standards, while the reported agreement on stablecoin yield rules under the Clarity Act marked an important step toward regulatory clarity in the U.S.

On the mining side, Riot Platforms’ contribution from data center revenues showed that Bitcoin miners are diversifying their business models. Overall, the market remains in a phase where Bitcoin continues to attract capital, but pressure around confidence, regulation, and infrastructure is still shaping the broader outlook.

Capital Flows: Bitcoin Inflows Strengthen While Ethereum Outflows Continue

ETF flows turned modestly positive on a weekly basis, supported by strong inflows into Bitcoin products. Ethereum continued to see outflows, while movement across Solana and XRP remained limited.

BTC : +$162.80M

ETH : −$82.50M

SOL : −$1.20M

XRP : −$40K

The distribution shows that capital remained concentrated in Bitcoin, while investors stayed more cautious toward Ethereum and altcoins. Strong net inflows into Bitcoin ETFs suggest that market confidence has not fully weakened, but Ethereum outflows show that risk appetite has not spread across the broader market. Limited outflows in Solana and the nearly flat movement in XRP also indicate that institutional demand for altcoin-focused products has yet to gain clear momentum.

Solana Founder Warns on AI and Quantum Security Risks

Solana co-founder Anatoly Yakovenko warned that artificial intelligence could become one of the most important cryptographic risks for the crypto ecosystem in the near term. According to Yakovenko, the industry does not yet fully understand the mathematical and implementation-related weaknesses of post-quantum cryptographic signature schemes. As a result, AI could potentially break certain post-quantum security models before crypto networks fully adapt to them.

Yakovenko suggested using multiple signature schemes in wallets as a way to reduce this risk. Multi-signature structures could reduce dependence on a single cryptographic method and create a more resilient security layer.

The warning shows that security debates in crypto are no longer limited to today’s attack vectors. As quantum computing and artificial intelligence continue to develop, the long-term resilience of blockchain networks is becoming a more important topic. For this reason, the issue matters less for short-term price action and more for the future security standards of crypto infrastructure.

Regulatory Agreement Reached on Stablecoin Yield Rules in the U.S.

Coinbase said an agreement had been reached on a disputed stablecoin yield provision under the Clarity Act, which has been stalled in the U.S. Senate process. The proposed language would prohibit digital asset service providers from paying U.S. customers interest or yield simply for holding stable coins. However, rewards linked to real activity such as transactions, payments, transfers, market making, staking, governance, and loyalty programs could remain outside the restriction.

This distinction is important for crypto platforms. While stablecoins would be prevented from being offered like bank deposit-style interest products, users would not be fully blocked from earning rewards tied to actual platform activity.

The development represents an important step for U.S. crypto market structure regulation. The agreement could help restart long-delayed discussions in the Senate Banking Committee. However, the bill still needs to pass through committee, be reconciled with other Senate versions, and be aligned with the House text, meaning the process is not yet complete.

Riot Platforms’ Data Center Revenue Helps Offset Mining Pressure

Bitcoin mining company Riot Platforms reported $167.2 million in revenue for the first quarter of 2026. The company’s newly launched data center business generated $33.2 million in revenue during the quarter, making a meaningful contribution to total revenue. This development shows that Bitcoin miners are increasingly looking beyond mining income and moving toward revenue diversification through AI and data center infrastructure.

Riot’s core Bitcoin mining revenue declined from $142.9 million to $111.9 million year over year. The decline was driven by a lower average Bitcoin price and a 24% increase in the global network hash rate. The company produced 1,473 BTC during the quarter, while the average cost to mine one Bitcoin rose to $44,629.

Riot’s balance sheet also remained notable for its large Bitcoin position. The company ended the quarter with 15,679 BTC worth around $1.1 billion, while also selling more than $250 million in Bitcoin during the same period. This shows that mining companies are trying to maintain BTC holdings while also creating liquidity for operations and new infrastructure investments.

CoinTR Insight

Today’s market structure shows that capital moving into Bitcoin is supporting the market, but confidence has not yet spread across all assets. Bitcoin’s positive divergence in ETF flows suggests that investors continue to prioritize more liquid and deeper markets when taking risk, while weakness in Ethereum and altcoins points to a still-cautious environment.

At the same time, AI and quantum security debates, progress on stablecoin regulation, and miners’ shift toward data center revenues show that the crypto market is undergoing change across infrastructure, regulation, and business models. In this environment, choosing the right asset is not the only priority for investors; executing trades in reliable and deep market conditions is becoming increasingly important.

CoinTR’s strong liquidity infrastructure and active USDT/TRY market enable users to;

Act quickly and efficiently during periods led by Bitcoin-centered market moves;
Manage market transitions more effectively when capital remains selective;
Maintain disciplined positioning as structural transformation continues.

While Bitcoin inflows support market confidence, the fact that capital has not yet spread across the broader market shows that the recovery remains selective and fragile.

Forward-Looking Takeaway

ETF flow continuity will remain one of the key indicators for market direction in the coming period. Sustained Bitcoin inflows could support confidence, but continued weakness in Ethereum and altcoin ETFs may keep the recovery centered on Bitcoin.

On the regulatory side, the Clarity Act process will remain a key area to watch, especially for stablecoins and digital asset service providers. On the technology side, debates around AI and post-quantum cryptography could bring long-term security standards for crypto networks further into focus. Overall, the market is finding support, but confidence will need broader capital participation to become more durable.

2026-05-04

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The information, comments, and evaluations contained in this content do not constitute investment advice. This content is not intended to be prescriptive in any way and is intended to provide general information. It does not constitute investment advice. CoinTR cannot be held responsible for any transactions made based on this information or any losses that may arise.

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