Why Bitcoin- And Ethereum-Related Stocks Block And MicroStrategy Are Falling

Shares of companies in the broader technology sector, including MicroStrategy Incorporated MSTR and Block Inc SQ, are both trading lower amid overall market weakness following the collapse of Russia-Ukraine ceasefire talks.

Block and MicroStrategy shares are also trading lower amid a decline in the price of Bitcoin BTC/USD and other major cryptocurrencies Thursday. Bitcoin is trading lower by 6.50% at around $39,200 Thursday afternoon.

Shares of companies in the broader tech sector are also trading lower after the 10-year US Treasury yield is hovering around a two-year high, which has pressured valuations. The 10-year Treasury yield hit an intraday high of 2.021% Thursday afternoon before dipping to around the 2.013% level. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.

Block is trading lower by 3.90% at $107.55.

MicroStrategy is trading lower by 5.46% at $412.91.