Bitcoin climbed above $77,400 on Sept. 18 after the Bank of Japan raised its benchmark rate 25 basis points to 1.25%, its highest level in roughly 31 years, while the yen weakened. The move came alongside $159.5 million in net inflows to U.S. spot Bitcoin ETFs and cooling short-term momentum on technical charts.
Bitcoin traded above $77,400 after the Bank of Japan raised its policy rate to 1.25% on Sept. 18, its second hike since June. CoinGecko showed Bitcoin near $77,409, up 1.4%, with the daily high reaching $77,623.53. The cryptocurrency had recovered from an overnight decline toward $76,200 before the rate decision.
BOJ hikes rate as yen weakens
The BOJ's Policy Board approved the 25-basis-point increase from 1.0% by a seven-to-two vote, citing inflation risks and progress toward its 2% price-stability target. Two dissenting members argued economic conditions did not yet justify another increase, while the majority pointed to import prices, energy costs and domestic price-setting behavior.
Despite the hike, USD/JPY rose from around 156.20 to approximately 156.70 after the announcement, showing the yen weakened rather than strengthened. BTC/JPY on Tokyo-based bitFlyer rose about 0.5% to 12.06 million yen. The interest-rate gap with the U.S. remains sizable: the Federal Reserve's target range stands at 3.75%–4.00%, roughly 2.5 to 2.75 percentage points above Japan's new rate. Higher Japanese rates draw attention from crypto traders because yen borrowing has historically funded leveraged positions across global markets, though Friday's reaction did not resemble a disorderly carry-trade unwind.
Bitcoin ETFs return to inflows
U.S. spot Bitcoin ETFs recorded $159.5 million in net inflows on Sept. 17, reversing two straight sessions of withdrawals of roughly $450.4 million and $295.9 million on Sept. 15 and 16. BlackRock's IBIT fund drew $183.7 million, while Fidelity's FBTC saw $16.6 million in outflows and VanEck's HODL lost $7.6 million. U.S. spot ETF holdings collectively stood at approximately 1.259 million BTC as of Sept. 17, with IBIT holding roughly 784,526 BTC.
Momentum cools on RSI and MACD
The 14-period RSI stands at 56.89, below its moving average of 60.55, indicating momentum has eased compared with the earlier stage of the rebound. The MACD line sits near 73, below the signal line at about 91, with a histogram around -19 pointing to a bearish crossover even as Bitcoin holds above $77,000.
Source: crypto.news
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