Japan’s newly appointed Prime Minister, Sanae Takaichi, revealed a set of economic stimulus initiatives on Tuesday aimed at alleviating inflationary pressures on households. Some cryptocurrency analysts suggested that this could lead to increased investment in Bitcoin.
The stimulus plan encompasses subsidies for electricity and gas costs, along with regional grants designed to mitigate price pressures and support small to medium-sized enterprises in raising wages.
Arthur Hayes, co-founder of BitMEX, interpreted this development as a precursor to increased fiat currency printing by Japan’s central bank, which may propel Bitcoin’s (BTC) value to $1 million.
“Translation: let’s print money to distribute to people to assist with food and energy expenses,” Hayes remarked in a Tuesday post on X post, suggesting that this scenario could lead to Bitcoin reaching $1 million while simultaneously boosting the Japanese yen.
In the meantime, the yen declined to a week-long low on Tuesday, shortly after Takaichi’s inauguration as Japan’s first female prime minister, which was regarded by investors as an ambiguous signal for the forthcoming interest rate decisions in the nation, as reported by Reuters.
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Takaichi’s “pro-stimulus” approach revives hopes for a QE shift by the Bank of Japan
Hayes previously forecasted that a shift by the Bank of Japan toward quantitative easing (QE) could serve as a significant catalyst for Bitcoin and other risk assets.
QE involves central banks purchasing bonds and infusing money into the economy to lower interest rates and stimulate spending during economically challenging periods.
The BOJ’s upcoming monetary policy meeting is scheduled for Oct. 29. Analysts expect the central bank to implement a 0.75% interest rate hike by early 2026, although there is no clear consensus regarding the specific timeline, Reuters reported on Monday.
The central bank is presently engaged in quantitative tightening, lacking any definitive plans to transition to QE until it meets its 2% inflation target.
Nonetheless, Takaichi’s “pro-stimulus stance” may soon “press Japan toward easing,” as 80% of global banks are already pursuing QE strategies, according to macro investment resource Milk Road Macro’s X post from Oct. 8.
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Bitcoin whales adopt bullish stance with new long positions after Bitcoin’s “flush” to $104,000
Meanwhile, large cryptocurrency investors, commonly referred to as whales, are demonstrating renewed interest in Bitcoin, as its price recovers from a drop to a four-month low of $104,000 on Friday.
Three whales re-engaged with decentralized exchange Hyperliquid on Wednesday, depositing tens of millions of dollars to establish leveraged long positions that utilize “borrowed” funds to amplify the investment size.
Notably, 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 X post.
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