A broad selloff has hit cryptocurrency markets over the past 24 hours, with the overall market capitalization falling nearly 3% to $1.27 trillion. The pullback comes after digital asset prices rallied strongly through October, with greed sentiment recently hitting two-year highs according to the Crypto Fear and Greed index.

According to Alex Kuptsikevich, senior market analyst at FxPro, the current dynamics fit the narrative of Bitcoin (BTC) as a safe haven asset, with rising demand for equities playing against the largest cryptocurrency. However, Kuptsikevich cautions against relying too heavily on Bitcoin’s defensive status, arguing the cryptocurrency remains highly sensitive to changes in broader risk appetite and often leads such market swings.

Its latest turnaround could foreshadow an intensifying sell-off in equities.

Alex Kuptsikevich

According to Kuptsikevich, Bitcoin likely entered a correction phase amid the broader risk-off move, but its longer-term bullish trajectory remains intact while prices hold above $32,300. Ethereum has fallen back below its 200-day moving average around $1,770, leaving it vulnerable to a decline toward $1,740 barring a swift reversal of sentiment.

The pullback across crypto markets comes despite a generally favorable news backdrop. Comments from market strategist Michael van de Poppe expressed confidence the Federal Reserve has completed its monetary policy tightening campaign, which could provide tailwinds to risk assets including Bitcoin.

Investment giant Fidelity continued its praise of Bitcoin as a burgeoning savings technology and inflation hedge. Corporate Bitcoin adoption continues, with MicroStrategy revealing additional BTC purchases last month.

However, regulatory scrutiny remains intensifying, particularly related to stablecoins like Go to Source to See Full Article
Author: Adrian Zmudzinski

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