The Bank of Japan raised its key rate by 25 basis points to 1.25 percent on Friday, September 18, 2026. That is the highest level in 31 years. Two days earlier, the US Federal Reserve had lifted its target range by the same amount to 3.75 to 4.00 percent. Two tightenings within three days, and the crypto market is still higher than the day before: Bitcoin was quoted at around $80,978 on the evening of September 18, 5.8 percent above its level 24 hours earlier, with Ether at around $2,613 and a gain of 6.5 percent (own query at CoinGecko on September 18, 2026 at about 18:52 UTC).

The short answer to the question this raises: a rate move by the Japanese central bank is only dangerous for crypto investors if it triggers an unwinding of…