Those who follow this blog know I’m not big on Bitcoin (BTC). I’m not really a fan of crypto in general because there’s no foundation on which to form solid investment strategies. The market moves at the whim, and security issues make it especially susceptible to fraud.

In the last couple of years, crypto has enjoyed a rather incredible influx of new investors. Propped up on a surplus of COVID stimulus, our economy was primed to pump a boatload of excess cash into digital currencies. Even meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) skyrocketed from stimulus funding.

But those days appear to be over.

In the last couple of months, crypto has seen a rapid decline. On the back of Bitcoin, just about every asset in this class has slipped well into the double digits, many of them by over 60%. This week, things got even grimmer.

 The Wall Street Journal reports:

The price of Bitcoin continued to fall Tuesday as the crypto industry struggles with fallout from the extended selloff.

Bitcoin traded as low as $20,834 earlier on Tuesday, according to CoinDesk. The original cryptocurrency hasn’t traded under $20,000 since December 2020.

“It was most recently down 3.9% from its price at 5 p.m. on Monday, at $22,351, down about 67% from its all-time high in November last year at $67,802.

Even the most popular crypto exchanges are feeling the fallout. Coinbase Global Inc. (COIN), the premier app for buying and selling Bitcoin, announced yesterday that it will be laying off 18% of its staff. Other crypto trading apps have made similar announcements.

In terms of investments, it doesn’t get much riskier than crypto. Unfortunately, with our current state of inflation and aggressive interest rate increases, risk is the last thing many investors want to accrue as they re-stack their portfolios.

The irony here is that crypto was formed to exist independently from our traditional investment economy. For years, it skirted regulation and the rule of Wall Street, but today, its trajectory is coming closer to that of its conventional currency. And how could it not? Even though it exists separately from fiat, it still moves based on real money.

As our economy continues to globalize and governments find their way through the armor of digital currencies, it won’t be long until crypto is just another component of traditional commerce. 

More Non-REIT News to Know About 

Musk Gathers the Troops

Elon Musk is set to hold an all-hands meeting with Twitter (TWTR) employees on Thursday. This will be the first time the eccentric entrepreneur has conversed face-to-face with his new employee base since he began courting the company in April.

Twitter CEO Parag Agrawal announced the powwow in an email to employees earlier this week, saying they could submit queries for Elon in advance. The company’s marketing executive, Leslie Berland, is set to moderate the event.

Reuters reports:

Ever since Musk’s takeover bid, many Twitter employees have expressed concerns that the billionaire’s erratic behavior could destabilize the social media company’s business, and hurt it financially.

Back in April, Agrawal was seen quelling employee anger during a company-wide meeting where staff demanded answers to how managers planned to handle an anticipated mass exodus prompted by Musk.

I don’t expect this to be Elon’s easiest endeavor, but perhaps he’ll be able to extend an olive branch to the scorned employee base. 

The World According to REITs 

Sale on American Tower 

In this economy, it’s open season on just about every asset class. From crypto to tech, commodities to retail, every sector is getting hammered under the rise of inflation and the anticipation of aggressive interest rate increases.

Yesterday, one of the strongest REITs on the market, American Tower (AMT), shed 2.31% to $234.49 during what proved to be an especially irksome trading day in general.

I reported yesterday that the S&P slipped into bear territory, and unfortunately, the decline has continued.

This is especially strange as AMT just received a buy rating from Bank of America on Monday. With a price target of $315, the bank adjusted its rating after American Tower announced the completion of the anticipated equity offering to assist with financing the CoreSite acquisition.

This all serves as further evidence that the Wall Street sector is truly running scared. They’re moving with fear, putting A+ assets on clearance left and right.

We in the REIT world operate on a different standard of security. We buy based on the asset itself—its balance sheet, fundamentals, and market strength. With a wide moat and truly sound performance, I’m behind Bank of America and giving AMT my “buy” rating. And thankfully, it seems to be on sale right now.