TL;DR:
- Japan’s new PM introduces subsidies and grants that could increase capital inflow into Bitcoin.
- Arthur Hayes sees expanded fiat printing and QE as potential triggers for Bitcoin to reach $1 million.
- Large Bitcoin holders are opening leveraged long positions, signaling renewed market optimism amid macroeconomic shifts.
Japan’s new Prime Minister, Sanae Takaichi, unveiled an economic stimulus package aimed at easing inflation pressures on households. The measures include subsidies for electricity, gas, and regional grants to support small and medium businesses and encourage wage growth. Observers suggest these policies could push more capital into Bitcoin, highlighting a growing link between government monetary intervention and crypto interest.
Hayes, BitMEX co-founder, sees the stimulus as a precursor to expanded fiat money printing by the Bank of Japan, which he believes could drive Bitcoin’s price to $1 million. He emphasized that the plan effectively prints money to help citizens with essential costs, while potentially boosting both Bitcoin and the yen in the near term.
Meanwhile, the Japanese yen fell to a one-week low after Takaichi assumed office as the first female prime minister. Investors interpreted this move as a mixed signal for upcoming interest rate decisions, adding complexity to macroeconomic predictions. Despite this, the market is closely watching Takaichi’s policies and potential influence on monetary easing.
Takaichi’s Pro-Stimulus Stance Could Spark QE and Crypto Growth
Hayes previously predicted that quantitative easing by the Bank of Japan could act as a major catalyst for Bitcoin and risk assets. QE involves central banks purchasing bonds to inject liquidity, lower interest rates, and stimulate spending during financial challenges. Analysts expect a 0.75% rate hike by early 2026, though no clear consensus exists for immediate QE implementation.
Macro analysts suggest that Takaichi’s pro-stimulus stance may accelerate monetary easing, aligning Japan with the 80% of global banks already engaging in QE. Such measures could increase Bitcoin adoption as investors seek a hedge against currency devaluation and inflationary pressures.
Bitcoin whales are responding to these developments. Large investors are opening new long positions on Hyperliquid, signaling renewed confidence as Bitcoin recovers from a four-month low of $104,000. Significant leveraged investments suggest that institutional actors anticipate a market rebound fueled by macroeconomic policy shifts.
As Japan navigates stimulus and potential QE, Bitcoin stands to benefit from increased capital flows and investor optimism, reinforcing its role as a hedge and speculative asset. Market watchers are now evaluating how central bank policies could shape crypto valuations in the coming months.
