Solana (SOL -1.38%) 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.

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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.