Bitcoin Price Forecast as Bank of Japan Hikes Rates to a 31-Year High

Bitcoin (BTC) price is up by 2.16% today, September 18, to trade at $78,100 at the time of writing. The gains come despite the Bank of Japan increasing interest rates to the highest level in 31 years.

The BoJ rate hike occurred two days after the US Federal Reserve also increased interest rates by 25 basis points as rising oil prices continue to exert inflationary pressures.

Bank of Japan Hikes Rates to 1.25%

The Bank of Japan has increased the country’s interest rate from 1% to 1.5%, with this being the highest interest rate in the country since 1995.

The BoJ attributed the hike to rising consumer prices after the country’s main inflation headline reached 1.9% in August 2026, with this being slightly below the BoJ’s target of 2%.

In his speech, the BOJ governor Kazuo Ueda said that the central bank was committed to making sure that inflation does not cross the 2% mark, suggesting that more rate hikes are imminent.

“If risks of underlying inflation overshooting 2% materialize, that could have a negative impact on Japan’s economy,” Ueda said.

Still, the hike did not cause a drop in Bitcoin price as had been earlier anticipated because of fears that the Yen carry trade would unwind. Instead, the JPY/USD dropped to 0.00633, with this being the lowest reading since September 3.