Japan’s recently appointed Prime Minister, Sanae Takaichi, unveiled a series of economic stimulus initiatives on Tuesday aimed at alleviating inflationary pressures on households. Some cryptocurrency analysts suggest this could lead to increased investments in Bitcoin.
The announced measures include subsidies for electricity and gas bills, as well as regional financial aid aimed at mitigating price increases and encouraging small to medium-sized enterprises to boost wages.
Arthur Hayes, co-founder of BitMEX, interpreted this development as an indicator of potential further money printing by Japan’s central bank, a move that could trigger Bitcoin’s (BTC) ascent to $1 million.
“In simpler terms: let’s create money to provide assistance for food and energy expenses,” stated Hayes in a Tuesday X post, adding that this scenario may propel Bitcoin to $1 million, while also influencing a rise in the Japanese yen.
In the meantime, the yen dipped to a weekly low following Takaichi’s assumption of office as Japan’s first female prime minister, prompting mixed signals among investors regarding the country’s upcoming interest rate decisions, as reported by Reuters here.
Related: $19B market downturn sets stage for Bitcoin’s rise to $200K: Standard Chartered
Takaichi’s “pro-stimulus” stance fuels expectations for QE shift by Bank of Japan
Hayes has previously asserted that the Bank of Japan’s potential transition to quantitative easing (QE) could represent a significant catalyst for Bitcoin and other risk assets.
QE involves central banks purchasing bonds and injecting liquidity into the economy to reduce interest rates and stimulate spending during difficult economic periods.
The BOJ is scheduled for its next monetary policy meeting on October 29. Most analysts predict the central bank will implement a 0.75% interest rate increase by early 2026, although a clear consensus on the exact timing is lacking, as reported by Reuters on Monday.
The central bank is currently in a quantitative tightening phase without any clear plans to revert to QE until it hits its 2% inflation target.
However, Takaichi’s “pro-stimulus stance” may soon “drive Japan towards easing,” especially since 80% of global banks are already pursuing QE strategies, according to a post by macro investment resource Milk Road Macro on October 8.
Related: SpaceX transfers $257M in Bitcoin, reigniting discussions regarding its crypto strategy
Bitcoin whales become optimistic with new long positions following Bitcoin’s drop to $104,000
Additionally, large cryptocurrency investors, also known as whales, are showing renewed interest in Bitcoin as its price starts to recover from a dip to a four-month low of $104,000 on Friday.
On Wednesday, three whales returned to the decentralized exchange Hyperliquid, depositing tens of millions of dollars to establish leveraged long positions, which utilize “borrowed” funds to amplify their investments.
Significantly, the 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, according to a Wednesday X post from blockchain data platform Lookonchain.
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