If you understand what a discount rate is, you understand why higher interest rates decrease value. It's just math: the present value of x cash n years in the f

If you understand what a discount rate is, you understand why higher interest rates decrease value. It's just math: the present value of x cash n years in the future at i discount rate is: x / ((1+i)^n) Discount rates are affected by interest rates, because interest rates represent what else you could do with your capital (you can always invest in a Treasury instead of a tech stock). So if i goes up, x goes down.