Why Solana Is Sinking Today
Valuations for Solana and other top cryptocurrencies are dipping today following new information in Tesla's quarterly report.
Tesla sold 75% of its Bitcoin holdings in the second quarter.
Despite some recent pullbacks, the crypto market has been on an impressive run -- and it's got a big test coming up at the end of this month.
10 stocks we like better than Solana ›
Solana (CRYPTO: SOL) is selling off Friday amid valuation pressures impacting the broader cryptocurrency market. The token was down 2% over the past 24 hours as of 5:20 p.m. ET. Meanwhile, Bitcoin was down 1.3%, and Ethereum was down 0.3%.
Top cryptocurrencies are seeing sell-offs today following Tesla's disclosure that it had sold 75% of its Bitcoin holdings in the second quarter. The crypto market has seen a significant recovery since the morning trading hours, but Solana is still in the red.
Solana slips as Tesla discloses Bitcoin sale
With the Q2 report Tesla issued yesterday, the company showed that it had sold 75% of its Bitcoin holdings in Q2. The news has caused investors to become more cautious about valuations in the crypto market today, and Solana is seeing a moderate valuation pullback in conjunction with the trend.
The cryptocurrency market has generally been on an impressive bull run, with Bitcoin's march above $123,000 per token and favorable political developments helping to power strong gains. On the heels of the rally, investors are taking profits, easing off on purchases, and waiting for indicators about where valuations might be heading next.
What's next for Solana?
Solana has climbed roughly 20% over the last three months, but it's still down 4% across this year's trading. The token now has a market capitalization of roughly $99 billion, and it ranks as the sixth-largest cryptocurrency by valuation.
The Federal Reserve's Federal Open Market Committee (FOMC) will meet on July 28 and July 29 and make a determination about whether to cut interest rates. Expectations that the FOMC will cut rates multiple times before the year is over have likely already factored in to gains for Solana and other cryptocurrencies over the last several months, but the upcoming Fed meeting still looks like the next big catalyst for the crypto market.
Should you invest $1,000 in Solana right now?
Before you buy stock in Solana, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Solana wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!*
Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 21, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.
Why Solana Is Sinking Today was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
39 minutes ago
- USA Today
Samsung stock rises on Tesla partnership after $16.5 billion AI chip deal
Shares in Samsung Electronics eked out small gains on Tuesday, following a sharp rally the previous day after the South Korean technology company clinched a $16.5 billion deal to supply artificial intelligence chips to Tesla TSLA.O. Analysts said the agreement could bolster the company's unprofitable contract manufacturing business, but Samsung faces challenges in securing additional large customers both for logic chips and memory chips where it struggles against TSMC and SK Hynix "This new deal breathes some much-needed life into the business and may signal the start of a turning point for Samsung, but its memory business will need to make considerable progress too," Ben Barringer, global technology analyst at Quilter Cheviot, said. Samsung Electronics, the world's top memory chip maker, has suffered delays in supplying the latest high-bandwidth memory (HBM) chips to key U.S. customer Nvidia NVDA.O, a setback that has dented its profits and weighed on its stock. In its "foundry" or contract manufacturing business, where it manufactures logic chips designed by customers, Samsung remains a distant second to market leader TSMC. "Whether this will open the door for additional large customers will depend heavily on its execution," Barringer said. Shares of Samsung recovered from early losses to close 0.3% higher on Tuesday, lagging the broader market's .KS11 0.7% gain. The shares were down more than 2% earlier in the session after surging nearly 7% on Monday, following the Tesla deal. Meanwhile, Samsung Electronics Chairman Jay Y. Lee departed for Washington on Tuesday. A Yonhap News Agency report said he was expected to support trade talks between South Korea and the U.S. but a company spokesperson, when contacted by Reuters, described it as "business trip", with no further details. While South Korea has been promoting partnerships in chips and shipbuilding with the U.S., a trade official said the Tesla deal was unrelated to ongoing trade talks aimed at reducing U.S. tariffs. Analysts, however, said the deal could enhance prospects for Samsung's investments in its Texas-based new chip factory. Eating at the Tesla Diner: Now serving EVs, burgers and fries. What the Tesla Diner could mean for drivers Favorable terms Tesla CEO Elon Musk said late on Sunday that Samsung's new chip factory in Taylor, Texas, would make the auto company's next-generation AI6 chips, likely to be used in self-driving cars, humanoid robots and data centers, without elaborating on the timing of the production. The deal comes as Samsung has struggled to win major customers for its new Texas factory, partly due to low production yields of its cutting-edge chips. "There also has to be a chance that the company was able to strike the long-term deal on favourable terms, given that Samsung needed to prove its contract manufacturing capabilities," said Russ Mould, investment director at AJ Bell. The long-term supply deal for a key technology from a U.S. factory would "lessen the risk of supply-chain dislocations or tariff friction," he said. "Samsung now needs to prove it can deliver in the right volume to the right quality for what is likely to be a demanding customer." While the deal is "more about securing the longer-term future, we won't see these in cars for at least a year or two," said Matt Britzman, senior equity analyst at Hargreaves Lansdown. Reporting by Hyunjoo Jin in Seoul and Zaheer Kachwala in Bengaluru, Additional reporting by Heekyong Yang and Jihoon Lee in Seoul; Editing by Ed Davies and Jacqueline Wong
Yahoo
43 minutes ago
- Yahoo
Cathie Wood shells out $22.8M to acquire hot new pick
Cathie Wood shells out $22.8M to acquire hot new pick originally appeared on TheStreet. It seems Ark Invest CEO Cathie Wood has become so fond of her new favorite crypto stock that she is willing to let go of her old favorites. On July 28, the investment firm again bought $22.8 million worth of 572,853 BitMine Immersion Technologies (NYSE: BMNR) shares across three funds. ARK earlier purchased $182 million in BMNR shares, with Wood going so far as to say her investment in the firm is a "vote of confidence." Fundstrat's Tom Lee, who recently joined as the Chairman of BitMine's Board of Directors, is very bullish on Ethereum and has set the firm's target of stacking 5% of ETH. Bitmine is the largest Ethereum treasury firm, which holds 625,000 ETH worth $2.35 billion. On July 29, it announced a $1 billion stock repurchase pursuing the acquisition of the new crypto favorite, ARK Invest dumped some of the old favorites. The investment firm sold $6.9 million worth of Coinbase (Nasdaq: COIN) shares, $12.7 million worth of Robinhood Markets (Nasdaq: HOOD) shares, and $15 million worth of Jack Dorsey's Block, Inc. (NYSE: XYZ) shares. While Coinbase is the largest crypto exchange in the U.S., Robinhood offers both stock and crypto trading. Jack Dorsey's Block, Inc., on the other hand, is a fintech firm that has several Bitcoin-focused products. Wood's investment firm still has substantial stock holdings in all these firms. Except for HOOD, all the stocks dipped on July 28. While HOOD rose modestly to close at $106.77, COIN fell nearly 4% to close at $379.49, and XYZ fell less than 1% to close at $80.57. BMNR, the stock Wood has been stacking, dipped as much as 15% to close at $35.11. Cathie Wood shells out $22.8M to acquire hot new pick first appeared on TheStreet on Jul 29, 2025 This story was originally reported by TheStreet on Jul 29, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Market sluggishness, dollar & yields, oil: Market takeaways
After Tuesday's closing bell, Yahoo Finance Markets and Data Editor and Stocks in Translation host Jared Blikre shares three takeaways from the trading session: summertime slowness, divergence between the US dollar (DX=F) and Treasury yields (^TNX, ^TYX, ^FVX), and oil prices (CL=F) rising. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. The S&P 500 snaps a six-day record streak as earnings flood in, the Fed decision looms. Here with more on the trading day takeaways, we got Yahoo Finances very own, Jared Blikre. Jared. Hey Josh, we were talking with Amy Silverman before and she called it out, the summer doldrums and I'm going to stick with that because even though we saw a little bit of a loss today in the S&P 500, it was a whopping one-third of one, not even one-third of 1%, and if I show you a two-month chart, it's going to be a whole lot of nothing here. We have not seen a 1% move the entire month of July. If we look to the downside, we had a 1% move way back in the middle of June. So really not a lot has happened each day in the indices. You have to go under the hood to find the action and we have found that from time to time, but I've also been looking at some of the other things uh that we look at when we talk about volatility and that is the VIX itself. The VIX was up almost one point today, but that was the most in weeks. So even the VIX has been quiet lately and at not even 16, that is historically low. So that's nothing to be concerned about or write home about. And we can also see this playing out in the MAG 7. The MAG 7 index hasn't moved 1% in a few weeks. And then finally, crypto, even crypto is quieted down, not to the same degree, it's still more volatile than the others, but here's a Bitcoin down 7/10 of 1% today. I'll just show you over the last five days, it's been moving less than 1% these last few days and so that even that's unusual for a Bitcoin. So the bottom line is we do have some other things like the calendars about to heat up tomorrow. No joke there and we can get into that later. But for today, yesterday and for most of the month, it's been kind of summer doldrums. Summer doldrums broadly subdued. But what were the what were the market moves you were watching today? Two things, rates in the dollar and they were diverging. So we had rates dropping pretty strongly to the downside, both the 10-year yield, both and the 30-year yield, those dropped by about nine basis points and part of the catalyst has been these surprisingly good uh treasury auctions. So we had a seven-year auction today. Here's a 10-year, we had the seven-year auction, but here's a 10-year down nine basis points to the downside and we can see it went down in a few different strokes. Here's the intraday and there we go. 1:00 p.m. was the auction time, but we also had some other auctions over the last two days, the two-year and the five-year. And then we have the three, 10 and 30-year, those are the big ones next week. But surprisingly high demand on the seven-year. This led to a re uh a lower a much lower rate and then meanwhile, and here's the divergence I'm talking about, up in the US dollar index and I find this to be good. You want to see this divergence when the dollar is moving to the upside. If it had happened the other way around, if the dollar had been going down, but rates had been going up, which meant people were selling bonds, that would be more like around liberation day and that would give me some cause for concern. This is not concerning to me, uh just a little bit of an anomaly there and we'll have to see what happens tomorrow, but again, those big auctions that we were going to be watching for are next week. Does that demand continue? There was record low primary dealer uptake on those auctions today. They're supposed to fill in the void, they didn't have to do that, so that's good news for America, I guess. What about commodities, my friend? All right, let's check that out too because we did see a spike in crude oil today and this was despite that stronger, slightly stronger dollar. Now the news was actually pretty big. This was a surprise announcement from Trump that Russia only has 10 days to negotiate a final ceasefire with Ukraine and we saw this play out in crude oil. I think it moved, yes, seven and a half percent. This is crude oil volatility. Let me get to crude oil itself. There we go. This is about 4% to the upside. Here is the announcement time and yes, that is a pretty dramatic uh move for crude oil. If I show you the year to date, you're going to see this was the biggest spike. Here was the Israeli strike on Iran that we saw. So not nearly that big, but again, notable and uh anytime crude oil moves big, you want to take notice, but since this is in the classification, what I would call a geopolitical shock and not even as big as this and this was immediately given back. Those gains were given back pretty close uh to the time at which they were forged. Um I'm not too worried about this either, but something to look, you know, into the future. Quickly, what what is on the Jared Blikre radar? Oh well, tomorrow we got Fed day. We got some MAG 7. We got four MAG 7 reports into and these are earnings reports into uh what is it? Thursday, culminating with Apple at 4:30 on Thursday. Um we got those big treasury auctions next week. So I think there's a lot to really Oh, and the Fed meeting. Did I say the Fed meeting? Anyway, we got a big Fed meeting tomorrow. So plenty of stuff to cover your calendar and to move the markets. Maybe we'll see a 1% day in the S&P. We shall see. Thank you, buddy. Related Videos Visa, Booking, Mondelez all beat on earnings: After-hours movers Freshworks CEO talks Q2 earnings, AI, and taking on the software giants eToro launches 24/5 trading. What will take to get to 24/7? Lucid teams up with Timothée Chalamet Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
