BOJ Rate Hike Sparks Calm Response in Bitcoin Markets

The Bank of Japan (BOJ) announced a policy-rate increase to about 1.25% on September 18, but Bitcoin's response was relatively calm.

Bitcoin rose from around $76,961 to $77,383 within 36 minutes after the announcement and hit an intraday high near $81,000, while the yen weakened by 1.2% against the dollar.

The limited initial reaction suggests that there may not be a significant immediate unwind of yen-carry trades, but experts warn that continued risk remains as the new rate takes effect on September 24 and the BOJ considers its next steps.

The BOJ voted 7-2 to lift its target for the uncollateralized overnight call rate by 25 basis points from about 1% to about 1.25%, with the new settings taking effect on September 24.