Japan’s newly appointed Prime Minister, Sanae Takaichi, unveiled a series of economic stimulus initiatives on Tuesday aimed at alleviating inflation’s effects on households. Some cryptocurrency enthusiasts suggest this move could lead to increased investment in Bitcoin.
The package features subsidies for electricity and gas, alongside regional grants intended to mitigate price pressures and incentivize small and medium-sized enterprises to boost wages.
Arthur Hayes, co-founder of BitMEX, considers this development indicative of further fiat currency printing by Japan’s central bank, potentially driving Bitcoin’s (BTC) value to $1 million.
“Translation: let’s print money to distribute to people for food and energy costs,” Hayes remarked in a Tuesday post on X post, suggesting that this trend could elevate Bitcoin to $1 million while also bolstering the Japanese yen.
In the meantime, the yen dipped to a one-week low on Tuesday following Takaichi’s inauguration as Japan’s first female prime minister, which investors interpreted as a mixed signal regarding forthcoming interest rate decisions in the nation, as reported by Reuters reported.
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Takaichi’s “pro-stimulus” position rekindles hopes for QE transition by the Bank of Japan
Hayes has previously suggested that a shift towards quantitative easing (QE) by the Bank of Japan might become a key catalyst for Bitcoin and other risk assets.
QE involves central banks buying bonds and injecting money into the economy to reduce interest rates and stimulate spending during economic downturns.
The BOJ’s next monetary policy meeting is scheduled for Oct. 29. Analysts predominantly predict a 0.75% increase in interest rates by early 2026, albeit with no broad consensus on the timing, as reported by Reuters reported on Monday.
The central bank is currently engaged in quantitative tightening, with no explicit plans to revert to QE until it achieves its inflation target of 2%.
Still, Takaichi’s “pro-stimulus” approach could soon “push Japan towards easing,” as 80% of global banks are already pursuing QE initiatives, according to macro investment resource Milk Road Macro’s Oct. 8 post on X post.
Related: SpaceX moves $257M in Bitcoin, reigniting discussions about its crypto strategy
Bitcoin whales adopt bullish stance with new long positions after Bitcoin’s “flush” to $104,000
At the same time, whales—large investors in cryptocurrency—are showing renewed interest in Bitcoin, as its price rebounds from a four-month low of $104,000 observed on Friday.
On Wednesday, three whales re-entered the decentralized exchange Hyperliquid, depositing tens of millions to establish leveraged long positions, which utilize “borrowed” capital to amplify their investments.
Importantly, whale wallet “0x3fce” expanded its Bitcoin long position to $49.7 million, while whale wallet “0x89AB” initiated a 6x leveraged long position valued at $14 million, as reported by blockchain data platform Lookonchain in a Wednesday post on X post.
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