Why Solana's Cryptocurrency Is Plummeting This Week

Recent comments from the Federal Reserve have prompted a major sell-off for high-risk investments, and Solana (CRYPTO: SOL) has been impacted by the pullback. The blockchain network's SOL cryptocurrency is down roughly 16.5% over the past week as of 4 p.m. ET on Friday, according to data from S&P Global Market Intelligence.

Transcripts of a Federal Reserve meeting held in mid-December were published on Wednesday, and the contents have riled the market and led to steep sell-offs for growth-dependent stocks and cryptocurrencies. In addition to significantly cutting back on bond purchases and raising interest rates, the Fed may also reduce its holdings in Treasury bonds and mortgage-backed securities, according to the recently published meeting transcripts. Add it all up and investors are looking at a much less favorable backdrop for growth stocks and cryptocurrencies.

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Source Fool.com