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Your crypto strategy should be about how much pain you can handle, not how much money you’ll make, Schwab finds

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Charles Schwab’s latest research on digital assets argues that cryptocurrencies’ place in a portfolio hinges less on return forecasts and more on how much risk an investor is willing to take.

The report frames bitcoin and ether (ETH) as high-volatility assets that can quickly reshape a portfolio’s risk profile. “Any allocation to cryptocurrency is likely to increase a portfolio’s volatility,” Schwab writes, pointing to sharp historical swings in both assets. Bitcoin and ether have each suffered drawdowns of more than 70% in past cycles, far exceeding typical declines in stocks or bonds.

Because of that volatility, even small allocations can have an outsized effect. Schwab finds that just a low single-digit percentage in crypto can account for a meaningful share of total portfolio risk. In some cases, allocations as small as 1% to 3% can materially change how a portfolio behaves during market stress.

The report outlines two common approaches to adding crypto exposure. The first follows traditional portfolio theory, where allocations depend on expected returns, volatility, and correlations. But Schwab highlights a key weakness: assumptions about crypto returns vary widely among investors.

“Our research suggests that cryptocurrencies may not offer a large enough risk-adjusted return to justify a meaningful allocation if return expectations are less than 10%, even for an aggressive investor,” the report states. That makes portfolio outcomes highly sensitive to subjective forecasts. A modest change in expected returns can lead to large swings in recommended allocation.

The second method focuses on risk budgeting. Instead of guessing returns, investors decide how much total portfolio risk they want crypto to contribute. This approach shifts the conversation from performance to tolerance. Still, Schwab cautions that crypto’s volatility can exceed expectations, even within a defined risk budget.

“There is no ‘correct’ allocation to cryptocurrencies, and we believe the decision is largely a personal one,” the report notes. Factors such as investment horizon, familiarity with digital assets, and capacity for loss all play a role.

The firm also stresses that crypto remains a speculative investment. “Cryptocurrencies and crypto-related products are not suitable for everyone,” Schwab writes, citing risks including illiquidity, theft, and fraud. It can offer diversification and the potential for higher returns, but it behaves more like a high-risk satellite holding than a core allocation, the report concluded.

Proposed Ethereum Standard Aims to Help AI Agents Execute Complex DeFi Trades

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In brief

  • A proposed Ethereum standard aims to simplify complex DeFi transactions.
  • ERC-8211 lets multiple blockchain actions execute in one transaction.
  • Researchers say it could improve the Ethereum user experience, and benefit transacting AI agents.

A new Ethereum proposal aims to make it easier for AI agents and applications to execute complex decentralized finance transactions in a single step, rather than several separate actions.

The proposed Ethereum standard ERC-8211 was introduced on Tuesday by Biconomy, a blockchain infrastructure company that builds developer tools for decentralized applications. The system, called smart batching, allows several blockchain operations to execute together while resolving transaction values in real time.

According to Biconomy, ERC-8211 addresses a common problem in DeFi. Many blockchain transactions depend on outputs that cannot be known in advance. When someone swaps one token for another, the final amount received can change because of price movement or trading fees.

“When you have an output from something like a swap, you don’t know how much that will be,” Biconomy co-founder Ahmed Al-Balaghi told Decrypt. “Developers have to either hard code that or find another way for that output to be used as an input for something else, like a deposit.”

ERC-8211 works by allowing each step in a transaction to reference the result of the previous one, instead of relying on fixed numbers written when the transaction is signed. In current Ethereum batch systems, transaction parameters are locked before execution begins.

Al-Balaghi emphasized that ERC-8211 is not an Ethereum Improvement Proposal (EIP), but a standard that developers can implement directly on the network. ERCs, or Ethereum Requests for Comment, define technical rules for how applications, tokens, and other features operate on Ethereum without requiring changes to the core protocol.

“EIPs are still somewhat harder on Ethereum, just because that does needs more stakeholders. That’s why ERCs exist, because they don’t need a protocol change,” he said. “If an ERC happens to get a lot of success in terms of adoption and awareness, then either it just stays as an ERC, or it could even be included in the protocol itself.”

According to Biconomy, with smart batching, each step resolves its value at execution time and must meet predefined conditions before continuing. An agent could withdraw funds from a lending protocol, swap the exact amount received, and deposit the result into another protocol within one signed transaction. This same functionality, Al-Balaghi said, also includes controls that can restrict what an agent is allowed to do.

Al-Balaghi said the system runs on existing Ethereum infrastructure and compatible networks, and does not require a change to the core protocol or a hard fork, creating a new chain.

“What we’ve built lets developers just say: Whatever the balance is of the user, just compose that with the next action. And it’s done,” Al-Balaghi added. “That means you can create these really powerful flows without writing new smart contracts. You can just do it in TypeScript.”

Barnabé Monnot, a research scientist with the Ethereum Foundation, said the proposal aligns with the organization’s effort to improve blockchain usability.

“The protocol cluster of the Ethereum Foundation has ‘Improve UX’ as one of its strategic priorities,” Monnot told Decrypt. “ERC-8211 support is coming from this strategic priority.”

Monnot said the collaboration began during a workshop in 2025 organized by the Foundation’s Improve UX initiative.

“The agentic execution angle is new, but has imposed itself given the rapid developments of agents over the last three months,” Monnot said. “It’s a perfect use case since agents can orchestrate complex cross-chain interactions, and ERC-8211 gives them the right platform to do so.”

According to Al-Balaghi, the Ethereum Foundation chose to collaborate on the effort because it had not explored this area in its own work, and recognized it could not address every challenge alone. That makes partnerships with teams like Biconomy a way to build the technology while moving more quickly than it could alone, and reflects a richer depth of interaction with the builder community following a series of Foundation changes made last year.

“I think the Ethereum Foundation, and this is from what I’ve seen personally by working with them—they’re way more willing to win,” he said. “Seeing that level of interactivity, that more competitive nature, wanting things to get done quicker, and being willing to work with the ecosystem is very promising compared to what it was just two years ago.”

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FinTech Wales Hits 200-Member Milestone Amidst Surge in Global Inward Investment

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FinTech Wales has officially reached 200 members, welcoming a diverse array of new organisations from across Wales, the wider UK, and the globe into its rapidly expanding network.

Established in 2019 to connect and champion the local tech and financial services community, the not-for-profit association’s latest milestone follows the publication of its 2024/25 Annual Report. The report recently highlighted the Welsh fintech sector’s continued investment resilience, robust employment growth, and world-first innovations.

A blend of local startups and global scaling

Recent additions to the Welsh ecosystem include homegrown businesses such as Oxyile, Valart, Bipsync, Alerte, Amino, CalonAI, OpenMoove, and InnovAItive Solutions. These companies span critical sectors including AI, data, payments, and research technology, representing a new generation of ambitious Welsh-founded startups.

Beyond local talent, FinTech Wales is currently experiencing strong inward investment from international firms actively choosing Wales as a strategic base to start or scale operations. Companies such as Paris-based Lideflow, Mauritius-based The Cloud Factory, and Canada-based Sibli are growing their presence in the region, drawn by a strong talent pipeline and a highly collaborative network.

Additionally, established UK businesses including My Time Pension, DataWollet, Planna, and GenAirate are expanding their operations into South Wales, reinforcing the nation’s position as a highly competitive fintech hub.

Bipsync highlights the global-local connection

Bipsync, an AI-powered investment workspace purpose-built for institutional investors, perfectly illustrates this global reach. Founded in 2012 by investment and technology experts with connections to Stanford University, the firm is headquartered in New York but maintains a strong, strategic presence in Cardiff.

Craig Marvelley, CTO of Bipsync, emphasized the region’s importance to the company’s growth trajectory.

  • “We’re delighted to join FinTech Wales at such an exciting time for the sector. Cardiff and Wales have been a key part of our journey, and remain an important part of our story as well as a source of exceptional talent,” Marvelley said.

  • “Being part of this vibrant community will help us strengthen our Welsh roots while connecting with like-minded innovators who are pushing the boundaries of financial technology.”

Looking ahead to the Welsh Fintech Festival

Sarah Jones, CEO of FinTech Wales, noted that reaching the 200-member mark is a testament to the undeniable strength and ambition of the local ecosystem.

“What’s particularly encouraging is the breadth of that growth – from homegrown Welsh start-ups to international businesses choosing Wales as their base to scale,” Jones explained.

To capitalize on this momentum, Jones announced a major upcoming event for the sector.

“The momentum will continue later this year as we announce the first Welsh Fintech Festival, taking place on 3rd June at the Swansea Building Society Arena,” she stated. “This landmark event will bring together industry leaders, innovators, collaborators and investors to showcase Welsh fintech on a national and international stage, further cementing Wales’ reputation as a dynamic and fast-growing fintech destination.”

index drops 2.4% as all constituents trade lower

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CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.

The CoinDesk 20 is currently trading at 1917.55, down 2.4% (-47.87) since yesterday’s close.

All 20 assets are trading lower.

Leaders: BCH (-1.0%) and CRO (-1.0%).

Laggards: AAVE (-8.5%) and AVAX (-7.6%).

The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.

Bitcoin Trader Eyes Bear Market Bottom as Stochastic RSI Mimics 2023

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Bitcoin (BTC) is copying the end of its 2022 bear market “nearly perfectly,” according to a new BTC price analysis.

Key points:

  • Bitcoin stochastic RSI values are “nearly perfectly” repeating the end of its last bear market, new analysis claims.

  • Both recent local bottoms and the current rebound echo conditions from three years ago.

  • Standard RSI is already on the radar for a potential BTC price bottom signal.

Bitcoin stochastic RSI echoes 2023 rebound

In an X post on Monday, crypto trader Quantum Ascend revealed copycat moves playing out on Bitcoin’s stochastic relative strength index (RSI) indicator.

Stochastic RSI, also known as “stoch RSI,” is a derivative of traditional RSI — a classic leading indicator that helps traders identify overbought and oversold conditions, as well as BTC price trend changes.

Like its standard counterpart, stoch RSI flashes “oversold” price signals when it drops below 30/100 on its scale, with “overbought” entering when its value is above 70/100.

Stoch RSI moves between those two zones much more quickly, but Quantum Ascend sees a key long-term bull signal now locking in.

“RSI at the EXACT SAME point on the Daily as it was in 2022,” he told X followers.

BTC price and stochastic RSI comparison. Source: Quantum Ascend/X

An accompanying comparative chart shows stoch RSI making a double bottom along with price before both surged higher in early 2023. At the time, BTC/USD had recently set a multiyear low of $15,600 — a level that ended up forming the bear-market bottom.

Now, Quantum Ascend says, the repeat performance is “playing out nearly perfectly.”

“Breaking above the EXACT SAME level (blue line). At the EXACT SAME time,” he added.

The chart reveals that stoch RSI is now attempting to clear its 50/100 midpoint after two local lows in late January and late March, respectively.

BTC price counts down to bear flag decision

RSI signals have already been firing in 2026 despite lackluster BTC price strength.

Related: First real bull signal since 2025? Five things to know in Bitcoin this week

As Cointelegraph reported, eyes are on weekly standard RSI to print a bullish divergence with price, again mimicking early 2023.

At the time, weekly RSI set its lowest level on record — one so far not matched in 2026, per data from TradingView.

BTC/USD one-week chart with RSI data. Source: Cointelegraph/TradingView

Bitcoin still faces bearish hurdles to recovery, with traders concerned about a bear-flag breakdown repeating on the daily chart.

“In a few days we will understand if the pattern is repeating or not,” analyst Aksel Kibar wrote on X over the weekend.

BTC/USD one-day chart. Source: Aksel Kibar/X