Bitcoin rises after BOJ's 1.25% rate hike, yen-carry test begins next week

The Bank of Japan raised its policy rate to about 1.25% on Sept. 18, increasing the uncollateralized overnight call rate by 25 basis points. The new target takes effect on Sept. 24. Despite the hike, Bitcoin's response showed limited signs of a disorderly yen-carry unwind. At the BOJ's announcement time, Bitcoin closed at 76961 dollars and rose to 77383 dollars within 36 minutes, reaching an intraday high of 81000 dollars. The dollar also increased to a two-week high of 157.84 yen during the BOJ press conference, leaving the yen 1.2% weaker. This indicates limited immediate unwind pressure in the markets, although longer-term risks remain as the new rate takes effect. The BOJ stated that financial conditions would remain accommodative while considering further rate increases based on economic and inflation outlooks.

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