Bitcoin rallies after BOJs 1.25% hike, but the real yen-carry test starts next week
The Bank of Japan announced a policy-rate increase to about 1.25% on Sept. 18, yet the visible Bitcoin and currency response showed limited signs of a disorderly yen-carry unwind. Related Asset Bitcoin #1 BTC · $81,002.51 24-hour change: up 5.67% Loading price history… 24H Up 5.67% 7D Up 4.63% 30D Up 17.84% The BOJ voted 7-2 to lift its target for the uncollateralized overnight call rate by 25 basis points, from about 1% to about 1.25%. The new target and related facility rates take effect Sept. 24, so the decision changed the policy path before it changed the official operating rates. That separates a scheduled funding-cost change from the market‘s reaction to the announcement. Positions can adjust before implementation, and the BOJ’s next signal could matter as much as Sept. 24 because the bank tied further increases to its economic and inflation outlook instead of a fixed timetable. That distinction matters for yen-funded trades. Investors can borrow yen to buy higher-returning assets elsewhere. A higher Japanese rate reduces the trades interest-rate advantage. If the yen appreciates, overseas borrowers must buy a more expensive currency to repay yen-denominated debt, increasing repayment costs in their home currency. Both forces can pressure leveraged risk positions, including crypto









