Bitcoin reclaims $80K as DXY falls amid continuing suspected yen intervention

Bitcoin (BTC) rallied 5% during US trading hours, reaching $81,000. 

Key points: 

• Bitcoin rallies above $81,000 in US trading, having risen more than 5% over the past 24 hours.
• USD/JPY drops to 155.4 amid suspected Bank of Japan (BOJ) intervention, dragging the US Dollar Index (DXY) down to 99.
• Polymarket odds for a BOJ rate hold collapse further from 12% to 1%, with a 98% probability now priced in for a 25-basis-point hike on Sept. 18.

Weaker dollar drags crypto higher

At the time of writing, BTC stands at $81,000, near the highs seen during last month’s surprise upside. 

The move comes as the Japanese yen (JPY) continued to strengthen in a suspected central bank intervention, which Cointelegraph first reported on Wednesday. After dropping to 158.5 on Wednesday, the USD/JPY pair saw further downside to 155.4. This put pressure on the DXY, which fell to 99. Downside in the DXY has historically been positive for Bitcoin. 

US Dollar Index 1-day chart. Source: TradingView

Shares of Michael Saylor’s Strategy (MSTR) participated in the rally and rose 8.6% on Wednesday. The stock is up 70% from its lows in late June, but still down roughly 10% year-to-date. Strategy’s perpetual preferred stock STRC, which had been frequently compared to a money market fund, is still trading below its par value of $100 and remains stuck at $97.80 at the time of writing.