The crypto market is deep in the red at the end of the week. Bitcoin and other currencies fell sharply last night. The largest crypto currency by market capitalization, Bitcoin, temporarily lost 7% of its value, dropped below $100,000 (about €94,900) and at the time of writing stands at $96,678 (about €91,800) - a price drop of nearly 4.5%.

Within the top 10 most valuable cryptocurrencies, Dogecoin (minus 13%), Cardano (minus 10%), and Solana and Ethereum (both minus 9%) were the biggest losers.
Total market capitalization fell about 5% to $3.34 trillion (about €3.17 trillion).

During this sell-off, more than a billion dollars (about €950 million) in long and short positions were liquidated in the past 24 hours, according to data from Coinglass.
Investors who had bet on rising prices were hit the hardest. About $1.03 billion (about €978 million) disappeared from the market. Investors who had instead bet on falling prices lost about $150 million (about €142 million).

Also, Bitcoin Spot ETFs had to make significant losses. About $671 million (about €637 million) flowed out of index funds yesterday - the highest outflow since their approval in January.

Despite the correction, investors hardly seem uncertain. The Fear and Greed Index, which measures market sentiment, fell just one point in the past 24 hours. At the time of writing, the index stands at 74 points, indicating "greed."

Possible causes of the selling wave can be found in recent statements by the U.S. central bank, the Fed. Although interest rates were cut by 25 basis points, at the same time the Fed indicated it would slow the pace of further rate cuts.

In addition, Fed Chairman Jerome Powell tempered discussion of a possible strategic Bitcoin reserve for the U.S.. He stated that the central bank may not hold cryptocurrencies. At the same time, he did leave the door ajar for possible legislative changes by Congress.