Why Solana Is Plummeting Today

Solana (SOL -22.15%) has been giving up ground over the last day of trading. The cryptocurrency's share price was down 19.4% over the previous 24 hours as of 6:45 p.m. ET Monday.
Solana's big pullback over the stretch is partially a reaction to the explosive gains that the stock posted in Sunday's trading. But the cryptocurrency also saw sell-offs in conjunction with a potential red flag in the artificial intelligence (AI) industry and macroeconomic volatility.
Solana sees sell-offs after asset-reserve rally
On Sunday, President Trump announced that Solana would be one of the cryptocurrencies that is included in the U.S. digital asset reserve program. The project aims to create a gold-like reserve for cryptocurrencies and other digital investment and payment vehicles.
The announcement immediately powered a big valuation pop for the token, but investors moved to take profits following the pricing surge. With today's sell-offs, Solana is now up just 1% over the last week.
Other news items are also weighing on Solana
AI stocks led sell-offs for the broader market this morning as a new round of news reports hit stating that China was managing to circumvent U.S. export restrictions on Nvidia's high-end graphics processing units (GPUs). The reports added to existing concerns about tensions between the two countries and the role that AI is playing in their sometimes hostile dynamic.
Adding another bearish catalyst, President Trump confirmed plans to move ahead with new tariffs on Mexico and Canada tomorrow. Investors are showing concerns that new tariffs will make inflationary pressures worse and potentially create other issues. While the news might not seem like an immediate catalyst for Solana's valuation, investors are hoping that inflation is tamed and that lower interest rates can help pave the way for bullish trading.