Bitcoin rallies following Bank of Japan rate hike as yen-carry trade test looms

The Bank of Japan raised its policy rate to approximately 1.25% on September 18, with the new target taking effect on September 24. While Bitcoin prices rose following the announcement, market analysts suggest the true impact on yen-carry trades remains to be seen as investors adjust positions ahead of the implementation date. The central bank indicated that future rate adjustments will depend on economic and inflation outlooks rather than a fixed schedule, leaving the extent of yen-financed crypto exposure uncertain.