Bitcoin reclaims $80,000 amid weak dollar and suspected BOJ intervention

Bitcoin rallied 5% during US trading hours. Bitcoin reclaimed $80,000. Bitcoin reached $81,000. Bitcoin had risen more than 5% over the past 24 hours. The Japanese yen strengthened amid suspected Bank of Japan intervention. USD/JPY fell from 158.5 on Wednesday. USD/JPY then fell to 155.4. The US Dollar Index fell to 99. Downside in the US Dollar Index has historically been positive for Bitcoin. Strategy shares rose 8.6% on Wednesday. Strategy shares are up 70% from their late-June lows. Strategy shares remain down roughly 10% year-to-date. Strategy's STRC preferred stock trades below its $100 par value. STRC stood at $97.80 at the time of writing. The suspected intervention and the prospect of a BOJ rate hike later this month revived fears of another carry-trade unwind. Analysts remain split on the intervention's impact. The Macro Paper said a nearly 2.5% USD/JPY drop in 24 hours would not occur without major intervention. The Macro Paper said the BOJ was most likely expected to raise rates this month. The Macro Paper said more rate hikes were possible in Q4. The Macro Paper said the BOJ had intervened and raised rates together in Q3 2024. The Macro Paper said that episode caused a $5 trillion wipeout from global markets. The Macro Paper said the VIX reached its highest level since the Covid crash. Polymarket's probability for a BOJ rate hold fell from 12%. It then fell to 1% on Wednesday. Polymarket priced a 98% probability of a 25-basis-point BOJ rate hike at the Sept. 18 meeting. Arthur Hayes, CIO of Maelstrom, has long said that the FIMA repo facility will provide Japan with dollar liquidity against Treasury collateral. Hayes said the facility would ease global liquidity conditions. No funds appear to have been drawn from the facility so far. Treasury Secretary Scott Bessent raised the possibility in late July.