Bitcoin holds above $77K on September 18. The Bank of Japan raised its benchmark rate by 25 basis points to 1.25%.
That is its highest level in roughly 31 years. Meanwhile, the yen weakened following the decision.
Why Bitcoin holds above $77K after BOJ decision
The Policy Board approved the increase from 1.0%. Specifically, the vote was 7–2. Officials responded to inflation risks and progress toward the 2% target. Reuters reported that policymakers retained guidance for further hikes. Additional increases depend on economic activity and prices.
Bitcoin traded at $77,409.41 at the time of checking. It was up 1.4% over 24 hours. The cryptocurrency moved between $75,971.64 and $77,623.53. Therefore, the current price sits near the upper end of its daily range.
The move followed an overnight decline toward $76,200. BTC recovered to roughly $77,400 after the decision. Meanwhile, BTC/JPY on bitFlyer rose around 0.5% to 12.06 million yen.
Foreign-exchange trading moved in the opposite direction. USD/JPY rose from around 156.20 to approximately 156.70. Therefore, the yen weakened despite the higher Japanese policy rate.
Reuters said investors focused on the two dissenting members. They also noted the lack of stronger language for rapid tightening. Consequently, the yen failed to strengthen after a widely expected decision.
Bitcoin’s rise should not be attributed solely to the BOJ. BTC had already started recovering from the $76,000 area. Meanwhile, ETF flows and Fed policy were moving at the same time. Treasury yields, oil prices, and geopolitical conditions also mattered.
BOJ raises rates as inflation risks stay elevated
Friday’s increase took the policy rate from 1.0% to 1.25%. This extends a tightening cycle away from ultra-low borrowing costs. The increase was the BOJ’s second hike in roughly three months. Policymakers raised the benchmark to 1% in June.
Two Policy Board members opposed Friday’s increase. Reuters reported that dissenters argued conditions did not justify another increase. The majority pointed to inflation risks from import prices and energy costs.
Japan’s central bank said the economy had continued recovering moderately. Some sectors remained weak nevertheless. Officials maintained that underlying consumer inflation was gradually moving toward 2%.
Higher oil costs remain one source of pressure. Japan imports much of its energy. A weaker yen can raise those costs further.
The BOJ said it would continue raising rates if its outlook is realized. The statement does not commit to a date or size for the next increase.
Yen carry trade remains a crypto risk factor
For years, low Japanese borrowing costs encouraged yen-funded positions. Higher BOJ rates increase the funding cost of those strategies. A rapid yen rise can create an additional problem. Traders must repay liabilities at a stronger exchange rate.
The latest decision did not produce that pattern immediately. The yen weakened and Bitcoin rose. Therefore, Friday’s first reaction did not resemble a disorderly unwind.
The interest-rate gap with the US remains sizable. The Fed raised its target range to 3.75%–4.00% earlier this week. Japan’s new policy rate is 1.25%. The difference remains approximately 2.5 to 2.75 percentage points.
The August 2024 selloff remains a common reference point. Equities and crypto dropped sharply as yen-funded trades came under pressure. Past behavior does not establish that the same response will occur.
Meanwhile, US monetary policy remains another factor. Reuters reported that Goldman Sachs and BofA expect another Fed hike in October. Most major brokerages expect another increase later in 2026.
Morgan Stanley does not currently share the October call. Reuters said Morgan Stanley and Macquarie expect a December increase. They also expect another hike in March 2027.
Bitcoin ETFs return to $159.5M net inflows
Institutional flows provided another data point before the BOJ announcement. US spot Bitcoin ETFs recorded $159.5 million in net inflows on September 17. This reversed two consecutive sessions of withdrawals.
BlackRock’s iShares Bitcoin Trust recorded $183.7 million of net inflows. Fidelity’s FBTC posted $16.6 million in outflows. VanEck’s HODL lost $7.6 million. The remaining products recorded no meaningful net movement.
Therefore, IBIT was the only fund with positive net flows that day. Saying it received $159 million would be incorrect nevertheless. BlackRock attracted more than the group’s net total. Withdrawals from Fidelity and VanEck reduced the combined result.
Bitcoin ETF Flows Source : Farside Investors
The inflow followed withdrawals of roughly $450.4 million on September 15. Another $295.9 million left on September 16.
BlackRock’s product remains the largest US spot Bitcoin ETF by holdings. Bitbo data placed US spot ETF holdings at approximately 1.259 million BTC. IBIT held roughly 784,526 BTC of that total.
In earlier coverage, the funds recorded a $730.9 million daily inflow on September 3. Therefore, daily institutional flows have remained volatile through September.
RSI and MACD show momentum cooling below $77,600
The supplied chart shows price recovering from approximately $76,200–$76,400. It moved into the $77,400–$77,600 area. Then it entered a narrower consolidation.
The 14-period RSI stands at 56.89. That is below its moving average of 60.55. A reading above 50 keeps the indicator positive. It remains below the 70 level associated with overbought conditions.
With the RSI below its moving average, momentum has eased. This compares with the earlier stage of the rebound.
The MACD gives a more cautious reading. Its line is close to 73. That is below the signal line near 91. The histogram is approximately -19. The bearish crossover shows weakening short-term momentum. Bitcoin still holds above $77,000 nevertheless.
Current TradingView data places the 24-hour high at $77,623.53. This closely matches the $77,600 area. The supplied chart shows recent candles encountering resistance there.
Below the market, the daily low sits near $75,972. Earlier technical coverage identified $75,000–$76,000 as a support region. Buyers had recently returned there.
The BOJ’s next policy moves remain conditional on inflation and economic data. For Bitcoin, the immediate market combines several factors. These include the Japanese rate increase and a still-large policy-rate gap. Recovering ETF inflows and technical resistance near $78,000 also matter.