Bank of Japan raises rates to 1.25% as Bitcoin tops $77,000
The Bank of Japan raised its policy rate by 25 basis points to 1.25% on Friday. The move lifted borrowing costs to their highest level in 31 years. The yen weakened after the decision, while Bitcoin climbed above $77,000.
The BOJ acted as inflation risks remained elevated, driven partly by higher import and energy costs. Policymakers approved the increase by a 7-2 vote, with two members dissenting. However, the central bank offered limited guidance on the pace of future increases. That uncertainty weighed on the yen, which fell as much as 0.8% against the dollar.
Bitcoin rose about 1% alongside ether after the announcement. The reaction highlights how currency moves and shifting central-bank policy can influence crypto markets. Investors will now focus on Governor Kazuo Ueda’s comments for clues about the BOJ’s next steps.
Why it matters
Higher Japanese rates can affect global currency and capital flows, while yen weakness can amplify volatility across major markets. Bitcoin's rise shows crypto remains sensitive to changing central-bank expectations.
