Ethereum co-founder Vitalik Buterin claims it is a “bad idea” to use artificial intelligence (AI) for governance. In an X post on Saturday, Buterin wrote:

“If you use an AI to allocate funding for contributions, people WILL put a jailbreak plus “gimme all the money” in as many places as they can.”

Why AI governance is flawed

Buterin’s post was a response to Eito Miyamura, co-founder and CEO of EdisonWatch, an AI data governance platchorm who revealed a fatal flaw in ChatGPT. In a post on Friday, Miyamura wrote that the addition of full support for MCP (Model Context Protocol) tools on ChatGPT has made the AI agent susceptible to exploitation.

The update, which came into effect on Wednesday, allows ChatGPT to connect and read data from several apps, including Gmail, Calendar, and Notion.

Miyamura noted that with just an email address, the update has made it possible to “exfiltrate all your private information.” Miscreants can gain access to your data in three simple steps, Miyamura explained:

First, the attackers send a malicious calendar invite with a jailbreak prompt to the intended victim. A jailbreak prompt refers to code that allows an attacker to remove restrictions and gain administrative access.

Miyamura noted that the victim does not have to accept the attacker’s malicious invite for the data leak to take place.

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The second step involves waiting for the intended victim to seek ChatGPT’s help to prepare for their day. Finally, once ChatGPT reads the jailbroken calendar invite, it gets compromised—the attacker can completely hijack the AI tool, make it search the victim’s private emails, and send the data to the attacker’s email.

Buterin’s alternative

Buterin suggests using the info finance approach to AI governance. The info finance approach consists of an open market where different developers can contribute their models. The market has a spot-check mechanism for such models, which can be triggered by anyone and evaluated by a human jury, Buterin wrote.

In a separate post, Buterin explained that the individual human jurors will be aided by large language models (LLMs).

According to Buterin, this type of ‘institution design’ approach is “inherently more robust.” This is because it offers model diversity in real time and creates incentives for both model developers and external speculators to police and correct for issues.

While many are excited at the prospect of having “AI as a governor,” Buterin warned:

“I think doing this is risky both for traditional AI safety reasons and for near-term “this will create a big value-destructive splat” reasons.”

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As shown in our previous market review, altcoins are still struggling. The market is moving toward an infliction point as the next move could be fundamental for multiple assets. Solana is showing signs of rally exhaustion, Ethereum is entering a potential stalemate. But despite the negative altcoin scene, Bitcoin might be pushing higher with a new bullish pattern.

Bitcoin’s key pattern

Bitcoin might be forming the cup-and-handle, one of the most well-known bullish patterns in technical analysis. Although not yet confirmed, the pattern appears on the daily chart, indicating that after weeks of volatile price action, digital gold may be getting ready for a brief reversal.

BTC fell, consolidated and then steadily recovered to retest resistance levels close to $114,000 during the cup part of the pattern, which seems to have formed between mid-August and early September. The subsequent brief decline is comparable to the start of the handle, a period of consolidation that frequently comes before a breakout. Key factors right now are:

• Technically speaking, Bitcoin might surpass the $114,000 resistance and aim for the $118,000-$120,000 range if the handle completes and buyers enter with conviction.
• The 50-day EMA, which has been capping rallies in recent weeks, is in that zone.
• Following a correction that pulled Bitcoin from highs above $124,000, a successful breakout would both confirm the cup-and-handle and reestablish bullish momentum. The setup is far from risk-free, though.
• Bitcoin is susceptible to a deeper retracement toward $104,000, the 200-day EMA, and a critical structural level for long-term investors if the pattern fails to hold the $110,000-$108,000 support area.

Short-term traders of Bitcoin should monitor the $114,000 neckline. BTC’s next leg higher could be launched from current consolidation if a breakout above it solidifies the mini cup-and-handle formation.

Ethereum’s pivotal level

The price structure of Ethereum is at a turning point. Ethereum has deviated from its steady wave-like pattern of higher highs and higher lows for the first time since its spectacular rally started earlier this summer. The asset is currently trending sideways rather than upward, which may be an early indicator of an impending reversal.

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Both the 20-day and 50-day EMAs have been supporting Ethereum’s strong upward channel since mid-July. New purchases followed each decline, resulting in a stairway rally that saw ETH reach $4,800. Recent candles, however, show a divergence from that bullish trend. With ETH struggling to regain its momentum, the price action has flattened and is now trapped between $4,200 and $4,500.

What this sideways move suggests is what investors are worried about. Strong upward trends usually indicate waning demand and give way to bearish momentum when they lose their rhythm. The next reasonable support level for ETH, if it drops below $4,200, is the 100-day EMA close to $4,000. Ethereum would be at risk of a more severe retracement toward $3,600 if there was a decline there, confirming that the rally’s structure has been officially broken.

A consistent drop in volume has also supported the notion that market players are retreating. Sideways price action frequently resolves to the downside in the absence of significant inflows. The $4,200 key zone is still important for traders to keep an eye on. The bullish story may be saved if ETH maintains this level and breaks above the $4,500 resistance with strong volume.

Solana rally ends?

A lower high is beginning to form on the chart, which is a clear warning sign that Solana is getting tired. Following months of steady gains and higher highs since July, this development may signal the start of a more significant trend reversal, which could put an end to the asset’s current bullish cycle.

SOL recently reached a peak of about $210, but it was unable to surpass its August high of about $225. As an alternative, price action rolled over, creating a lower high, which is a classic indication of waning bullish momentum. Every high should surpass the one before it in a healthy uptrend, but this pattern break indicates that buying pressure isn’t strong enough to push Solana higher at this point.

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Declining trading volume combined with the daily structure makes it even more worrisome. Enthusiasm has waned, suggesting that market participants are reluctant to keep joining the rally even though the price is still above the psychological $200 threshold. A loss of momentum is reflected in the Relative Strength Index’s (RSI) flattening.

A confirmed trend reversal could occur from the lower high if Solana is unable to recover the $225 level in the near future. If $196, a crucial short-term support, were broken, further declines toward $185 and the 100-day EMA at $176 would be possible. A stronger move might even put the 200-day EMA close to $170 to the test, which would seriously undermine the long-term bullish argument.

The upward trend is currently on life support. A significant push above $210-$215 is necessary for bulls to regain confidence. If not, Solana’s lower high might signal the beginning of a longer-lasting bearish phase that could change market sentiment in the upcoming months.

Across Bitcoin, Ethereum and Solana, price action is tightening around levels that could determine the direction of the market in the next few weeks. A confirmed breakout would restore confidence in the uptrend, while failure to hold support zones risks shifting sentiment decisively bearish.

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The rise of Bitcoin treasury companies has sparked an intense debate over whether they add stability or new layers of risk to businesses. Analysts from the global credit rating agency, Morningstar have expanded on the skepticism, pointing out that using cryptocurrencies such as Bitcoin as a primary reserve currency may weaken, rather than strengthen the stability of corporate treasuries.

The Dark Side Of Bitcoin Treasury Companies

The adoption of cryptocurrencies for treasury functions has become one of the most trending topics in the financial industry. In a commentary published on August 21, Morningstar analysts noted that while Bitcoin and Ethereum are increasingly used for payments and investments, the shifts toward employing them for treasury functions introduce risks that could outweigh potential benefits. 

According to the commentary, Bitcoin treasury companies are likely exposing themselves to elevated levels of financial instability. One of the biggest drivers of this risk is the absence of clear regulatory oversight. Morningstar analysts highlighted the lack of a global regulatory framework for cryptocurrencies, with countries like the United States and Canada adopting differing approaches, while others, such as Egypt and China, impose outright bans.

This fragmented environment reportedly creates unpredictability for corporations that must manage compliance and financial stability. For treasuries, where certainty and legal clarity are vital, the analysts caution that such uncertainty may heighten credit risk and weaken confidence in long-term planning. 

Morningstar further stressed that cryptocurrency markets lack the depth of traditional asset markets, making liquidity unreliable. The analysts warn that this can cause companies to incur losses or face delays when attempting to access capital. They also note that such disruptions undermine the efficiency expected of corporate treasury management.  

Morningstar’s report also highlighted security risks for Bitcoin treasury concerns companies, noting that reliance on third-party custodians and exchanges such as Coinbase or Binance exposes them to operational failure, cyberattacks, and regulatory disputes. It added that the dual role of these exchanges as both trading platforms and custodians increases counterparty risks, weakening the stability of treasury reserves. 

Further Warnings Issued Over BTC Treasury Firms

In the commentary, Morningstar analysts further stated that volatility remains the most striking weakness of Bitcoin treasury companies. Their research underscored that Bitcoin is nearly five times more volatile than the S&P 500 in the short term, exposing companies to sudden valuation swings that can severely destabilize operations. 

Morningstar also noted that the materiality of crypto holdings is another central concern of Bitcoin treasury companies. The analysts caution that when digital assets make up a significant portion of a company’s reserves, the treasury begins to function more like a speculative portfolio than a financial safeguard. 

The report pointed out that firms like Strategy Inc., which holds over 629,000 BTC, are particularly exposed to this imbalance. With the top 20 public companies controlling 94% of total public Bitcoin treasury holdings, the sector also faces significant concentration risks. Furthermore, Morningstar warns that Bitcoin treasury companies may also be vulnerable to technical failures, exchange insolvency, liquidity crises, and weakened creditworthiness, even with insurance and security measures in place.

Featured image from Pixabay, chart from Tradingview.com

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JPMorgan Chase, Citi and Wells Fargo say they’ve lost $5.361 billion from customers who can no longer pay their debt.

In their Q2 2025 earnings reports, the three major banks disclosed billions of dollars in losses from “net charge-offs” — loans written off as uncollectible after all efforts to recover payments proved unsuccessful.

Among the trio, JPMorgan Chase reported the highest level of charge-offs at $2.4 billion, predominantly driven by bad credit card debt.

Meanwhile, Citi wiped $2.234 billion in bad loans off its books, including $1.889 billion tied to its retail credit card portfolio.

And Wells Fargo recorded $977 million in net charge-offs, fueled by $818 million in sour loans from its consumer banking and lending segment.

The figures come as fresh data from the Federal Reserve Bank of New York shows that US credit card balances reached $1.18 trillion by the end of March 2025.

Despite the losses, Citi reported a $225 million decline in net credit losses quarter-over-quarter, and Wells Fargo saw a $12 million decrease in net charge-offs over the same period. However, JPMorgan witnessed an increase of at $179 million in net charge-offs over the three-month period.

Additionally, the three banks reported strong earnings in Q2, with JPMorgan, Citi and Wells Fargo generating $15 billion, $4 billion and $5.5 billion in net income, respectively.

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Billionaire venture capitalist Chamath Palihapitiya believes that a long-term decline of the US dollar is not an existential concern for America.

In a new episode of the All-In podcast, host Jason Calacanis highlights that the US dollar index (DXY) witnessed its worst first-half performance in over 50 years after losing nearly 11% of its value against other major currencies in the first six months of 2025.

While Calacanis describes the slump as “shocking,” Palihapitiya argues that the dollar has been in decline for decades, and it’s not a major concern because the gains from US assets have consistently outweighed the currency’s depreciation.

“This has been a one-way trade for a very long time, and it’s probably important to understand why that is. And I think it generally has to do with the fact that the United States finances a lot of growth, and that has been the right decision. 

Unless you see a complete collapse in the currency, I suspect that this decay continues to happen. So the question is, is it a bad thing? And the answer is it depends. 

Because if asset prices increase faster than the dollar devalues, you’re still ahead… If you look at asset prices in the United States relative to asset prices any place else in the world, it is the flight to quality, which is to say it is the thing that everybody wants to own. And you see that in the equity markets, you see it in real estate, you see it in hard assets…

The reality is that a lot of people still want to own these assets more than they want to own other assets and those assets are dollar-denominated.”

Palihipatiya also highlights that there will be a constant demand for dollar-denominated assets as long as “there’s American ingenuity and American supremacy,” which would meaningfully offset the downside of holding USD.

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Investors point to the pausing and reduction of tariffs as examples of this, with Trump’s initial announcements spooking the markets and leading to reduced valuations, before things changed. The idea behind the TACO trade is to buy when that fall happens, since inevitably the president is due to back off from his harsh stances and the market will bounce back.

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I understand the theory, but I think it’s flawed and comes with serious risks. Here’s why I don’t think you should do it and why there is a better strategy to deploy amid market volatility.

Image source: Getty Images.

Why the TACO trade could fail miserably

At its core, the TACO trade is a speculative bet on government policy. And betting on any kind of government policy can be risky and unpredictable. What may seem like a sure thing today could appear incredibly unlikely later on.

Just ask cannabis investors of how certain they were in early 2021 (when the Democrats controlled the House and Senate) that marijuana legalization was inevitable. One cannabis company’s CEO even said he expected his Canada-based company to be operating in the U.S. in a year. Those hopes didn’t pan out — not by a long shot.

Government policy comes with a lot of red tape and complexity. And while it may seem like we’ve experienced a predictable pattern of a tough policy announcement followed by a pause or scaling back of those policies, that doesn’t mean that it will continue. There’s also the risk that rising talk of the TACO trade could embolden the president to take a tougher stance. When he was asked about the acronym, Trump said the person had asked a “nasty question.”

S&P 500 returns since Liberation Day data by YCharts

The S&P 500 (SNPINDEX: ^GSPC) has risen by around 6% since “Liberation Day” and the announcement of global and reciprocal tariffs back on April 2. Buying amid that uncertainty and fear would have proven to be a good move. But with the broad index now getting close to its all-time high again, it would take a significant sell-off in the markets to get back to those lows today. Trying to profit from smaller moves in the market can be risky.

It’s one thing to bet on a company to perform well and to hit its expectations in an upcoming quarterly earnings report, but it’s a far riskier bet to buy or sell stocks based on what the president may do. And by doing so, you could end up in an unenviable position, potentially incurring significant losses if those expectations don’t match up to reality.

What investors should do instead

Trying to time the market is a risky endeavor that the world’s smartest investors caution against. It makes more sense to create a watch list of stocks you might consider buying if their price drops. Then, set your own price targets — prices that you think would be cheap for those stocks.

You could put your numbers in a spreadsheet, adding current prices for stocks to see how far away a stock is from your price target. In the event that the market tumbles based on bad news, you can load up on any stocks on your watch list that may have reached your desired price targets. It’s important when considering these price targets to build in some margin of safety; it should be a pretty attractive deal rather than just a 5% or 10% drop in price.

Personally, I do this and set aggressive price targets that are near 52-week lows and perhaps even around multiyear lows. With a watch list of stocks and the prices you’re willing to pay, you’ll be ready to deploy money you have for investing, i.e., that you won’t need for several years or to pay regular bills or high-interest debt.

As long as you have a watch list that includes safe, blue chip stocks, this is a strategy which can yield much stronger results in the long run than simply trying to bet on short-term trends and patterns. It will require patience, but by setting up your own watch list and buying when the price for one of your stocks is too cheap to pass up, you can set yourself up for significant gains, which will likely eclipse anything you’ll earn in the short run from a speculative TACO trade.

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Although the past 24 hours have been characterized by heavy selloffs, Bitcoin is still currently holding above the $100,000 level, trading around $103,700 as of the time of writing. Notably, signs of exhaustion are also beginning to surface for Bitcoin, especially in the past 48 hours.

While long-term indicators suggest a bullish continuation for the Bitcoin price, short-term models indicate a breakdown of bullish strength, particularly as the cryptocurrency approaches the critical $100,000 support zone. 

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This sentiment is relayed by popular crypto analyst Willy Woo, who shared the good and bad news based on Bitcoin’s current technicals.

Good News: A Bullish Long-Term Signal Still Intact

According to Woo, one of the strongest long-term signals, the Bitcoin Risk Signal, is currently trending downwards. This drop indicates that buy-side liquidity is currently dominant in the long-term environment, setting the stage for another strong leg upward.

The lower the risk reading, the safer it is to hold or accumulate Bitcoin, and this signal’s current decline shows a relatively low-risk environment for long-term investors.

Woo noted that this long-term setup is intact, and with Bitcoin trading well above the psychological six-figure mark, the momentum is still in favor of the bulls in the long term.

At the time of writing, the local risk model, as shown in the chart below, is currently in the mid-range, having declined from peak levels in early 2025, and is expected to continue trending downwards. In another analysis, Willy Woo noted the next significant move could push it above $114,000 and trigger liquidations of short positions.

Bad News For Bitcoin Price

Although the long-term picture is still favorable, the short-term models, including the Speculation and SOPR (Spent Output Profit Ratio) metrics, are flashing caution. Using this indicator, Woo noted that the strength of the rally from $75,000 to $112,000 has started to weaken, especially with flat capital inflow in the past three days. 

Keeping this in mind, Bitcoin’s price action this week is critical. “If we do not get follow through, then we will be up for another consolidation period,” the analyst said. If spot buying fails to pick up strongly in the coming week, which is the first week of June, especially with U.S. markets reopening after a long weekend, there will be a chance for a bearish pivot.

The good and bad news can be summed up as follows: if buying pressure opens up quickly, Bitcoin could break above $114,000 and head toward the next major liquidity zone between $118,000 and $120,000. Failure to push higher could confirm bearish divergences and set the stage for another round of consolidation.

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At the time of writing, Bitcoin is trading at 103,700, down by 1.5% and 3.9% in the past 24 hours and seven days, respectively.

Featured image from Unsplash, chart from TradingView

Under the guidance of Trump henchman RFK Jr, the CDC spends time and money investigating things we already know, and moving away from protecting children.

The benefits of vaccines and fluoride are understood. Cities have tried experiments where they ceased adding fluoride to their water supplies, and dental cavities increased. Vaccines and inoculations have been employed by “Americans” since George Washington’s time as “General & Commander in Chief of the army of the United Colonies and of all the forces raised or to be raised by them.” Even the Romans knew lead poisoning was bad.

On April 1, the staff of the CDC’s Childhood Lead Poisoning Prevention Program was terminated as part of the agency’s reduction in force, according to NPR. The staff included epidemiologists, statisticians, and advisors who specialized in lead exposures and responses.

The cuts were immediately consequential to health officials in Milwaukee, who are currently dealing with a lead exposure crisis in public schools. Six schools have had to close, displacing 1,800 students. In April, the city requested help from the CDC’s lead experts, but the request was denied—there was no one left to help.

In a Congressional hearing this week, US health secretary and anti-vaccine advocate Robert F. Kennedy Jr. told lawmakers, “We have a team in Milwaukee.”

But Milwaukee Health Commissioner Mike Totoraitis told NPR that this is false. “There is no team in Milwaukee,” he said. “We had a single [federal] staff person come to Milwaukee for a brief period to help validate a machine, but that was separate from the formal request that we had for a small team to actually come to Milwaukee for our Milwaukee Public Schools investigation and ongoing support there.”

ArsTechnica

Previously:
• CDC stops reporting COVID-19 cases on cruise ships
• CDC issues dire warning against kissing, or even snuggling, turtles
• People’s CDC releases new COVID guide: ‘What to Do if You Have COVID’
• Measles on the brink of return warns CDC