Key highlights:
- The Bitcoin price is facing pressure as the Bank of Japan (BOJ) has increased interest rates
- The BOJ raised the rate to 1.25%, marking its highest level in 31 years
- The move follows the US Federal Reserve’s decision to raise rates, for the first time in three years
The Bitcoin price is once again under pressure after the Bank of Japan announced its interest rate hike. The BOJ has reportedly raised the rate to 1.25%, marking its highest level in 31 years. The move has brought back attention to the yen and risky assets, including Bitcoin and other cryptocurrencies.
Just In: Bank of Japan Raises Rates by 25 Bps to 1.25%, Highest Level in Around 31 Years
The Bank of Japan raised its policy rate by 25 basis points from 1.0% to 1.25%, with the decision passing by a 7–2 vote. The BOJ said Japan’s economy is recovering moderately despite some… pic.twitter.com/DataT8LDp1
— Wu Blockchain (@WuBlockchain) September 18, 2026
BOJ raises interest rates to 1.25%, Bitcoin price in focus
The Bank of Japan has increased its benchmark interest rate by 25 basis points, bringing the 1% rate to 1.25%, a 31-year high. The move comes in response to rising inflation fears and a weakening Japanese yen.
As noted by the central bank, the latest interest rate hike was significantly driven by concerns about inflation moving away from its 2% target. The central bank finds it more difficult to control inflation amid rising import and energy costs.
Notably, the move has put fresh pressure on the Bitcoin price and the broader crypto market. Although crypto hasn’t reacted immediately to the BOJ’s rate hike, BTC is still under pressure. As inflation pressure and the central bank’s stricter policy could spark a risk-off sentiment among investors, it could impact the Bitcoin price. An increase in capital outflows from BTC could spark increasing selling pressure, leading to a further downfall in the crypto price.
At present, the Bitcoin price is still in the positive sphere, trading at $77,320, up 1.20% in a day. However, the price has dropped sharply from the recent high of $80k. The trading volume over the last 24 hours has also declined by 26% to $22 billion. This means that traders are waiting to confirm the trend before making any moves.
Meanwhile, the yen weakened against the dollar. The USD/JPY pair moved up to 156.70 from 156.20. This indicates that the Japanese yen has also not reacted immediately to the BOJ’s rate hike decision.
BOJ rate hike comes as US Fed raises rates
It is worth noting that this is the second time the BOJ has increased interest rates in the last three months. This indicates that Japan is far away from its long period of low interest rates. It is also worth mentioning that the latest decision comes on the heels of the US Federal Reserve’s decision to increase its interest rates. US Treasury Secretary Scott Bessent has also urged Japan to tighten its monetary policy faster to support the falling yen. Bessent stated that a stronger yen could reduce risks in the US Treasury market.
Reportedly, the Federal Reserve changed its monetary policy under the current Chair Kevin Warsh. The US central bank raised its rate by 25 basis points to 3.75%-4%, marking the first hike in three years. “The plain fact is that inflation is too high, and has been for too long,” stated Warsh.
Following the US Senate’s failure to pass the much-awaited CLARITY Act on September 15, the crypto market experienced a sudden fall. After showing a positive trend for days, the Bitcoin price and the broader market started exhibiting bearish signals since then. Now, the pressure has further increased with interest rate hikes by the Fed and the BOJ.
Source:: Bitcoin Price Under Pressure As BOJ Raises Rates to 31-Year High