BOJ Interest Rate Hike Sparks Pressure on Bitcoin Price

The Bank of Japan's (BOJ) decision to raise interest rates has put pressure on the Bitcoin price. The BOJ increased its benchmark rate by 25 basis points, bringing it to 1.25%, a 31-year high.

This move follows the US Federal Reserve's decision to raise rates for the first time in three years. The US central bank raised its rate by 25 basis points to 3.75%-4%, marking the first hike in three years, with Chairman Kevin Warsh stating that 'the plain fact is that inflation is too high, and has been for too long.'

The BOJ's decision was driven by concerns about inflation moving away from its 2% target, amid rising import and energy costs. The central bank finds it more difficult to control inflation under these conditions.

The Bitcoin price is still trading at $77,320, up 1.20% in a day, but has dropped sharply from the recent high of $80k. The trading volume over the last 24 hours has declined by 26% to $22 billion.