Bitcoin climbs above $77,400 after BOJ raises rates to 1.25%

Bitcoin rose to around $77,409 on Sept. 18, up roughly 1.4% in 24 hours, after the Bank of Japan (BOJ) lifted its benchmark policy rate by 25 basis points to 1.25%, the highest level in about 31 years.

BOJ rate decision and yen reaction

The BOJ approved the increase by a 7‑2 vote, marking its second hike since June. The move was aimed at addressing inflation risks and supporting the central bank’s 2% price‑stability target. Despite the higher policy rate, the Japanese yen weakened, with USD/JPY moving from about 156.20 to 156.70 after the announcement.

Bitcoin price action and technical outlook

CoinGecko reported a daily high of $77,623.53 and a low near $75,972, placing the price near the upper end of its range. The 14‑period RSI stood at 56.9, below its moving average, indicating neutral‑bullish sentiment but a slowdown in momentum. The MACD showed a bearish crossover, suggesting short‑term momentum weakening even as Bitcoin held above $77,000.

ETF inflows and market context

U.S. spot Bitcoin ETFs attracted $159.5 million of net inflows on Sept. 17, driven primarily by BlackRock’s iShares Bitcoin Trust (IBIT). Other funds saw mixed flows, with Fidelity’s FBTC posting outflows and VanEck’s HODL also withdrawing capital.

Analysts note that Bitcoin’s rise cannot be attributed solely to the BOJ decision; the price had already begun recovering from the $76,000 area, and broader factors such as Federal Reserve policy, Treasury yields, oil prices, and geopolitical conditions were also influencing the market.

Implications for yen‑funded crypto positions

Higher Japanese rates increase the funding cost of yen‑carry‑trade strategies that have historically financed leveraged crypto positions. However, the immediate market reaction did not trigger a rapid unwind, as the yen weakened and Bitcoin rose concurrently.