MicroStrategy Shares Under Pressure as Bitcoin Traders Exit and Nasdaq Plunges 4.77%
MSTR•Bitcoin’s momentum has faded as traders shift focus, potentially weighing on MicroStrategy’s bitcoin-backed shares. Broader tech sell-off saw the Nasdaq 100 drop 4.77% after May job growth of 172,000 and the 10-year Treasury yield rose above 4.5%, intensifying rate-hike bets.
1. Bitcoin Momentum Declines
Bitcoin has entered a consolidation phase after sharp rallies, with momentum-focused traders reallocating capital to other sectors. MicroStrategy, whose equity performance is closely tied to bitcoin’s price, may see increased share volatility as attention shifts away from the digital asset.
2. Tech Sell-Off and Rate-Hike Bets
The Nasdaq 100 plunged 4.77% following a stronger-than-expected May payrolls report of 172,000 jobs and the 10-year Treasury yield climbing above 4.5%. This broad technology downturn, driven by renewed federal rate-hike expectations, has pressured growth-oriented names, including MicroStrategy’s high-beta stock.
