Benzinga reported that Bitcoin, Ethereum, XRP and Dogecoin pulled back about 2% as markets waited for the Federal Reserve’s upcoming rate decision. The report noted that Bitcoin continued to hold above $65,000, even as the broader group of major cryptocurrencies moved lower.
The move came against a macro policy backdrop shaped by a hawkish Bank of Japan rate hike. According to the report, that rate hike tightened global liquidity conditions. In crypto markets, liquidity conditions are an important part of the trading environment because they frame how investors assess risk assets during periods of central bank policy changes.
Despite that tighter liquidity setting, Bitcoin remained above the $65,000 level cited in the report. Ethereum, XRP and Dogecoin were also named among the assets that pulled back as traders waited for the next policy signal from the United States central bank.
Benzinga also noted that crypto sentiment had improved from “extreme fear” to “fear.” That change reflects an improvement from the prior sentiment reading, although the market was still described as being in a fear state. The article did not present a shift into a more optimistic sentiment category.
The main focus for investors is now the Federal Reserve’s upcoming policy decision. Benzinga described that decision as the next major market catalyst. The reported setup therefore centers on three facts: a roughly 2% pullback in Bitcoin, Ethereum, XRP and Dogecoin; Bitcoin staying above $65,000; and investors watching the Fed after a hawkish Bank of Japan hike tightened global liquidity conditions.