BOJ Rate Hike Spurs Calm Response from Bitcoin

The Bank of Japan (BOJ) raised its policy rate by 25 basis points to about 1.25% on September 18, but Bitcoin's reaction was surprisingly calm.

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

This move is significant because it affects yen-funded trades, where investors borrow yen to buy higher-returning assets elsewhere.

A higher Japanese rate reduces the trade's interest-rate advantage and can pressure leveraged risk positions, including crypto exposure.