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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. 
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 Its latest turnaround could foreshadow an intensifying sell-off in equities. <cite>Alex Kuptsikevich</cite>
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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. 
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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 <a href="https://crypto.news/fidelity-executive-calls-bitcoin-exponential-gold/" data-type="link" data-id="https://crypto.news/fidelity-executive-calls-bitcoin-exponential-gold/">Fidelity</a> continued its praise of Bitcoin as a burgeoning savings technology and inflation hedge. Corporate Bitcoin adoption continues, with <a href="https://crypto.news/microstrategy-buys-5-3m-in-bitcoin-bringing-total-holdings-to-over-150000-btc/" data-type="link" data-id="https://crypto.news/microstrategy-buys-5-3m-in-bitcoin-bringing-total-holdings-to-over-150000-btc/">MicroStrategy</a> revealing additional BTC purchases last month. 
However, regulatory scrutiny remains intensifying, particularly related to stablecoins like <a href="https://crypto.news/sec-issues-subpoena-to-paypal-over-its-pyusd-stablecoin/" data-type="link" data-id="https://crypto.news/sec-issues-subpoena-to-paypal-over-its-pyusd-stablecoin/">PYUSD which PayPal</a> launched this summer without oversight. The SEC has reportedly opened an investigation into Paypal’s stablecoin, further illustrating the uncertain regulatory environment facing digital assets. 
For now, the crypto pullback appears to be more of a breather than the start of a new bearish trend. But sustaining the massive gains of the past month could require continually favorable macro conditions. With recession risks lingering and central banks still plotting additional rate hikes, volatility likely persists for Bitcoin and altcoins. 
 Read more: <a href="https://crypto.news/jack-dorseys-block-stock-jumps-as-cash-apps-bitcoin-revenue-hits-2-42b/"> Jack Dorsey’s Block stock jumps as Cash App’s Bitcoin revenue hits $2.42b </a>

Bitcoin’s pullback — warning sign or blip on the radar?

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