Bitcoin rises above $81,000 as US dollar weakens on suspected yen intervention
Bitcoin rose more than 5% to reach $81,000 during US trading hours as the US dollar weakened. The dollar’s decline followed a suspected intervention by the Bank of Japan to support the Japanese yen, which fell to 155.4 against the dollar.
Market moves and key numbers
- Bitcoin price increased over 5% in 24 hours, reaching $81,000.
- USD/JPY currency pair dropped to 155.4, pushing the US Dollar Index (DXY) down to 99.
- Polymarket data shows a 98% probability of a 25-basis-point Bank of Japan rate hike on September 18.
- Shares of MicroStrategy, a company holding Bitcoin, rose 8.6%.
Why the yen’s move may be affecting Bitcoin
A weaker US dollar has often coincided with higher Bitcoin prices in the past. The suspected Bank of Japan intervention, combined with expectations of a rate hike, has raised concerns about a possible unwinding of carry trades—where investors borrow in low-interest-rate currencies like the yen to invest in higher-yielding assets.
Analysts are divided on the impact. Some, like The Macro Paper, note that a similar situation in late 2024 led to market shifts after the Bank of Japan both intervened and raised rates. Others, such as Arthur Hayes of Maelstrom, suggest that potential dollar liquidity from the US Treasury’s repo facility could ease global financial conditions, though no funds have been drawn yet.
What is still uncertain
It remains unconfirmed whether the Bank of Japan officially intervened in currency markets. The market’s reaction is based on observed price movements and analyst interpretations rather than official statements.
