The Bank of Japan (BOJ) on Friday raised its benchmark interest rate by 25 basis points to 1.25%, the highest level in 31 years, to combat persistent inflation and a prolonged weak yen. This marks the BOJ's second rate hike in three months.

Following the rate hike, the Japanese Yen depreciated against the US Dollar from 156.20 to 156.70. On the bitFlyer exchange in Tokyo, Bitcoin against the Japanese Yen (BTC/JPY) rose 0.5% to JPY 12.06 million. Bitcoin's USD-denominated price remained largely stable at around $76,900.

Previously, US Treasury Secretary Scott Bessent had publicly urged Japan to accelerate its tightening policy to support the yen, arguing that an orderly yen market would benefit the stability of the US Treasury market.