Bitcoin Surges Past $80k Amid Yen Weakness and Renewed Risk Appetite
Bitcoin's price surged above $80,000 on September 18, just hours before weak US economic data was released. This move coincided with a yen weakness and followed a return to Bitcoin ETF inflows from the previous day.
The advance had already begun in European trading, with Dow Jones reporting that Bitcoin was up 2.3% at $78,309. The rebound was linked to Thursday's technology-led recovery, which saw prices improve despite ongoing monetary tightening concerns.
Reuters reported that Nasdaq 100 E-mini futures were up 0.56% at 9:50 a.m. BST, as lower oil prices eased inflation concerns and supported the interpretation of Bitcoin participating in renewed appetite for risk.
The Bank of Japan's decision to raise its overnight call-rate target to 1.25% from 1% was announced earlier that day, but its impact on the yen's decline was not seen as a shock. Instead, it was attributed to traders' expectations of a more hawkish message being disappointed by the two dissenters.
The US policy backdrop remained restrictive, with Wednesday's Federal Reserve decision being a quarter-point rate hike. However, US spot Bitcoin ETFs recorded net inflows of $159.5 million on September 17, providing evidence that demand through the funds improved before Friday's advance.