1. The crowd that bids up bitcoin and tech stocks do so with leverage. 2. Leverage becomes more expensive with higher rates. 3. The same crowd owns both asset

1. The crowd that bids up bitcoin and tech stocks do so with leverage. 2. Leverage becomes more expensive with higher rates. 3. The same crowd owns both assets (e.g. Bitcoin and Tesla) 4. Qs are low yield assets with high projected future cashflows. Low rates bring those cash flows to the present, high rates discount them more aggressively. Bitcoin has 0 cash flow, so the effect is worse. Bitcoin proponents have no financial education. Bitcoin is not a hedge for anything (including inflation). Crypto is a high beta asset with an inelastic supply which makes it even more volatile in periods when everyone wants/needs to liquidate simultaneously.