Bitcoin reaches $81,000 after BOJ lifts rates to 1.25%

CryptoSlate reports that Bitcoin reached an intraday high of $81,000 following the Bank of Japan’s decision to raise its policy rate. The central bank voted 7-2 to hike the benchmark overnight lending rate by 25 basis points, moving from about 1% to about 1.25%.

The updated benchmark and associated facility rates become active on Sept. 24. According to CryptoSlate, initial market reactions indicated few indicators of a chaotic yen-carry unwind.

Coinbase data logged the figure of $76,961 for the asset when the 02:54 UTC release occurred. By 03:30 UTC, the value had increased to $77,383. The asset kept rising throughout the day, peaking at $81,000 intraday. Bitcoin is up 6.20% over the past 24 hours.

The currency movement diverged from the standard pattern of a carry-trade collapse. Reuters reported that the dollar rose to a two-week peak of 157.84 yen during BOJ Governor Kazuo Ueda’s briefing, resulting in a 1.2% decline for the Japanese currency on the day.

The bank indicated that monetary conditions would stay loose. It kept open the option for further rate hikes should its projections for economic activity and inflation come to pass.