Gate Ventures This Week's Cryptocurrency Market Update (May 4, 2026)

Summary

• The S&P 500 index closed above 7,200 points for the first time, while major tech hyperscalers announced Q1 2026 earnings, with overall results exceeding market consensus expectations.

• The Federal Reserve kept policy rates in the 3.50%–3.75% range, but with four dissenting votes, marking the most divided FOMC meeting since 1992.

• Brent crude oil surged to about $105 midweek due to the Strait of Hormuz supply shock, then retreated to $101.94 after Iran proposed a peace plan, which was subsequently rejected by Donald Trump.

• STRC traded below face value for the second consecutive week, halting ATM issuance, with no new Bitcoin purchases, and its dividend yield remained at 11.5%.

• Despite flat performance among the top 30 assets, TAO outperformed the market mainly due to the expansion upgrade of the Bittensor subnet.

• Four Pillars completed Series A funding to expand institutional blockchain research and infrastructure capabilities.

• Belo completed $14 million in Series A funding led by Tether to expand stablecoin payment infrastructure across Latin America.

Macro Overview

Driven by tech earnings, the S&P and Nasdaq rose while the Dow lagged; PMI and employment data beat expectations, indicating economic resilience

The S&P 500 closed at 7,230 on Friday, surpassing 7,200 for the first time in history, up +0.91% for the week. The Nasdaq finished at 25,114 (+1.10%), hitting a new all-time closing high for the second consecutive week. The rally was primarily driven by “almost perfect” earnings reports from hyperscalers: Apple reported $111.2 billion in Q2 2026 revenue (above the expected $109.7 billion), with EPS of $2.01, boosting its stock by over 3% in a single day. Google Cloud grew 63% YoY; Meta raised its 2026 capex guidance, reinforcing AI infrastructure investment expectations; Amazon AWS growth accelerated again; Microsoft Azure’s outlook was also positive. Strong earnings, combined with easing Strait of Hormuz tensions on Friday, made April the best-performing month for US stocks since 2020. The Dow rose +0.81% to 41,150, and the Russell 2000 increased +0.76%.

Q1 2026 GDP preliminary estimate grew +2.0% YoY, slightly below the +2.3% expected, but still indicating positive momentum. March PCE inflation surged to 3.5% (from 2.8%), mainly due to oil supply shocks from Iran and the Strait of Hormuz. Core PCE (excluding food and energy) rose to 3.2% (from 3.0%), remaining well above the Fed’s 2% target.

Initial jobless claims last week were 241,000, higher than 226,000 previously, continuing a marginal weakening trend in the labor market. The six-month average of new monthly jobs slowed to 14,800, significantly below the typical 175,000–200,000 during expansion phases. Overall, the economy shows signs of “stagflation,” with slowing growth amid rising inflation.

The FOMC held rates steady at 3.50%–3.75% at its April 28–29 meeting, but with four dissenting votes, the most divided decision in over three decades. Three regional Fed presidents opposed the market’s implied easing bias, advocating for flexible policy amid oil-driven inflation and geopolitical uncertainties; one supported a 25 basis point cut. Kevin Warsh’s nomination was confirmed by the Senate Banking Committee; known for his hawkish stance on inflation, he is viewed as a potential hawk successor. Markets subsequently reduced the probability of a June rate cut. Polymarket shows a 96% chance that the Fed will hold rates steady in June.

Oil prices experienced extreme volatility last week, with a historic supply shock triggered by Strait of Hormuz disruptions. WTI surged to $105, Brent peaked at $126.41, and exports dropped to about 4% of normal levels. After Iran proposed a peace plan, prices retreated, but the US rejected the plan and maintained the maritime blockade. Elevated energy costs are directly fueling global inflation and complicating central bank policies worldwide. Goldman Sachs estimates this shock could persist for months, embedding ongoing risk premiums in energy markets.

Looking ahead, markets will focus on the ISM services PMI to assess whether consumer-driven activity remains resilient amid rising inflation and slowing GDP. Weak data would reinforce stagflation fears; sustained resilience would support risk assets. ADP employment figures will serve as a key leading indicator for non-farm payrolls, providing early signals on labor market and wage pressures, crucial for Fed policy. Fed Governor Christopher Waller’s speech will be the first major communication in the “Warsh era,” offering insights into whether policy stance will shift further hawkishly or adjust course. (1)

Dollar Index DXY

Despite hawkish dissent at the Fed, the dollar index (DXY) fell to 98.211, mainly due to weaker-than-expected Q1 GDP and oil price increases reducing the dollar’s growth premium.

With Kevin Warsh’s nomination advancing, markets are pricing in a more hawkish Fed path, supporting the dollar index around 98.00. (2)

US 10-Year and 30-Year Treasury Yields

In the context of the four dissenting votes at the FOMC, yields edged higher, reinforcing the “higher for longer” rate narrative. March PCE inflation at 3.5% further increased inflation expectations at the long end of the yield curve.

The anticipated departure of Powell and the hawkish tilt of Kevin Warsh keep the yield curve steepening expectations firmly in place. (3)

Gold

Supported by increased risk appetite from tech earnings, gold experienced a continuous pullback, with short-term safe-haven demand easing.

However, geopolitical risks in the Strait of Hormuz, ongoing central bank gold purchases, and limited real yields could continue to support gold prices medium-term. (4)

Crypto Market Overview

Mainstream Assets

BTC价格

ETH价格

ETH/BTC Ratio

Bitcoin (BTC) remained mostly range-bound last week, with a slight increase of 0.11%, while Ethereum (ETH) declined by 1.9%. Spot Bitcoin ETF saw inflows of $153.9 million, whereas spot Ethereum ETF experienced net outflows of $82.5 million. (5)

Meanwhile, the ETH/BTC ratio fell 1.9% to 0.029. Market sentiment slightly weakened, with the Fear & Greed Index dropping to “Fear” at 40. (6)

Market Cap

Total Crypto Market Cap

Crypto market cap excluding BTC and ETH

Crypto market cap excluding the top ten tokens

Overall, the total crypto market cap last week was relatively flat, down only 0.6%. Excluding BTC and ETH, the market cap declined by 1.1%. The altcoin market cap excluding the top 10 assets fell further by 1.8%. (7)

STRC Performance

STRC traded $882 million last week, with all trades below face value of $100. This marks the second consecutive week of below-face-value trading, resulting in no ATM issuance this week.

Nevertheless, Strategy maintained the 11.5% dividend rate for STRC in May, unchanged after multiple previous increases, marking the third consecutive month of stable payout.

Within Strategy’s financial instruments, STRC accounted for 79% of total trading volume last week, down from 85% the previous week. Next was SATA (Strategy’s floating-rate perpetual preferred stock) at 13.5%, and STRK (convertible perpetual preferred stock) at 3.4%. (7)

Since no ATM issuance occurred and all decisions were made by Strategy, no Bitcoin was purchased last week.

Top 30 Crypto Assets Performance

Source: CoinMarketCap and Gate Ventures, as of May 4, 2026

Among the top 30 assets, average price increased by 0.1%, with DOGE, Zcash, and TAO leading gains.

Bittensor (TAO) rose 14.1% last week, mainly driven by the Opentensor Robin τ upgrade, which expanded subnet capacity from 128 to 256 and added 128 AI developer slots to compete for TAO emission incentives. (8)

Key Developments in the Crypto Industry

US Finalizes Stablecoin Yield Rules Under CLARITY Act, Advancing Legislation

The US has published the final version of stablecoin yield provisions under the CLARITY Act, marking a key step toward clearer crypto regulation and paving the way for potential legislation in 2026.

The revised rules prohibit crypto firms from offering interest or yields solely for holding payment stablecoins, aligning more with interest-free payment tools. However, rewards related to “real on-chain activity,” such as network usage or platform engagement, remain permitted.

This compromise reflects ongoing industry vs. traditional banking debates: banks advocate for stricter restrictions to protect deposit competitiveness. (9)

Spain Becomes Leading Retail Market for EURC in Europe

Brighty data shows Spain has become Europe’s largest retail market for Circle’s EURC stablecoin, accounting for about 36% of trading volume and 25% of trading value from 2025 to Q1 2026.

Average transaction size in Spain is around 49 euros, indicating EURC is mainly used for daily payments, P2P transfers, and card spending, rather than large transactions.

This early observation under the MiCA regulatory framework highlights the adoption of euro stablecoins. Despite rapid growth, EURC remains small compared to USDC and USDT in the dollar stablecoin ecosystem. (10)

Solana Clients Anza and Firedancer Launch Post-Quantum Falcon

Solana’s validator clients Anza and Firedancer have deployed a test version of Falcon, a post-quantum signature scheme designed to address future quantum threats without significantly impacting network performance.

Falcon-512 is positioned as suitable for high-throughput blockchain environments. Jump Crypto states that Falcon has the smallest signature size among NIST-selected post-quantum standards, helping reduce bandwidth and storage demands.

This upgrade reflects rising industry focus on quantum-secure cryptography, though Falcon remains a forward-looking measure rather than an immediate network upgrade. (11)

Major Venture Capital Deals

Four Pillars Completes Series A to Expand Institutional Blockchain Research and Infrastructure

Blockchain research firm Four Pillars closed Series A funding supported by Pantera Capital and Further Ventures, aiming to expand into an institutional-focused blockchain research and infrastructure provider.

The company plans to grow from a single research unit into three platform segments: FP Research, FP Validated, and FP Institution.

This shift indicates increasing capital-driven demand for institutional-grade information and infrastructure. Four Pillars aims to serve as a cross-market interface to address fragmentation between Asian and global crypto ecosystems. (12)

Liquid Raises $18 Million in Series A to Build Multi-Asset Leverage Trading Platform

Crypto derivatives startup Liquid completed an $18 million Series A round led by Neo and Left Lane Capital, with participation from Haun Ventures, K5 Global, SV Angel, AntiFund, and Sunflower Capital, to expand its 24/7 leveraged trading platform covering crypto, stocks, commodities, prediction markets, forex, and private secondary markets.

Initially launched as a crypto derivatives aggregator, Liquid now aims to be a universal exchange for retail traders across assets, offering simplified interfaces and up to 200x leverage in some jurisdictions.

As native crypto platforms expand into “non-crypto asset trading,” this trend accelerates. (13)

Belo Completes $14 Million Series A Led by Tether to Scale Stablecoin Payments Across Latin America

Argentine fintech Belo raised $14 million in Series A funding led by Tether, with participation from Titan Fund, The Venture City, Mindset Ventures, G2, and existing investors, to expand its cross-border stablecoin payment platform in Latin America.

Founded in Buenos Aires, Belo integrates Argentine peso, Brazilian real, USDC, USDT, and Bitcoin in a single wallet, offering crypto-enabled Mastercard and Pix payment support to simplify remittances, FX conversions, and local spending.

The funding will support expansion into Mexico, Chile, Colombia, Peru, Bolivia, and Paraguay, and deepen its presence in Brazil. (14)

Venture Market Data

Last week, 15 deals closed: 8 in infrastructure, 4 in social, 2 in DeFi, and 1 in data.

Weekly Venture Deal Summary, Source: Cryptorank and Gate Ventures, as of May 4, 2026

Total disclosed funding was $167.2 million, with 4 deals undisclosed. The largest sector was infrastructure, with $133.7 million raised.

The largest single deal was Fun, with $72 million raised.

Weekly Venture Deal Summary, Source: Cryptorank and Gate Ventures, as of May 4, 2026

In the first week of May 2026, total funding surged to $167.2 million, a 205% increase from the previous week.

About Gate Ventures

Gate Ventures is the venture capital arm of Gate, focusing on investments in decentralized infrastructure, ecosystems, and applications, aiming to reshape the Web 3.0 era. Collaborating with global industry leaders, Gate Ventures empowers innovative teams and startups to redefine social and financial interactions.

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