BOJ Rate Hike Leaves Bitcoin Unfazed, But Risk Remains Open

The Bank of Japan (BOJ) raised its policy rate to 1.25% on September 18, but Bitcoin's immediate response was relatively orderly.

The BOJ voted 7-2 to increase its target for the uncollateralized overnight call rate by 25 basis points, from about 1% to about 1.25%, which takes effect on September 24.

The yen weakened after the decision, running against the usual pattern of a carry-trade unwind, where a sharp yen appreciation alongside falling risk assets would be a stronger warning of unwind pressure.

Despite this, Bitcoin rose by 6.20% over the past 24 hours to reach an intraday high of $81,000, and its market capitalization currently sits at $1.63 trillion.