Crypto Markets Defy Expectations as Bank of Japan Raises Rates

The Bank of Japan raised its policy rate by 25 basis points to 1.25% on September 17, sparking concerns about a potential selloff in the crypto market.

However, the crypto market defied expectations and rose, with Bitcoin's market cap increasing to $1.551 trillion and Ethereum's market cap hitting $301.467 billion.

The Bank of Japan's rate hike typically would have led to a decline in risk assets like cryptocurrencies, but this time around, investors seemed unfazed by the news.

In terms of Bitcoin ETFs, September 17 saw $159.45 million in net inflows, marking the second-lowest daily haul this month, according to SoSoValue data.

On the other hand, Ethereum and XRP funds experienced outflows of $39.24 million and $5.15 million, respectively.