BOJ Rate Hike Sparks Yen Carry Trade and Bitcoin Market Attention

The Bank of Japan raised its policy rate by 25 basis points to about 1.25% on September 18, sparking market attention on the yen carry trade and Bitcoin.

Crypto markets initially responded with a rise in Bitcoin price, which closed at $76,961 before reaching an intraday high of $81,000 within 36 minutes after the announcement.

The dollar climbed to a two-week high of 157.84 yen during the BOJ press conference, leaving the yen 1.2% weaker.

Market analysts note that while the rate move did not immediately force broad deleveraging tied to yen-funded positions, it keeps pressure on leveraged positions funded in yen and may reshape global liquidity conditions.