Bitcoin has surged to a record high against the Japanese yen, driven by renewed hopes for economic stimulus under Japan’s newly elected Prime Minister, Takaichi Sanae. This development comes as Japan considers reviving the “Abenomics” strategy, a set of economic policies first implemented by former Prime Minister Shinzo Abe in 2012. These policies aimed to revitalize the Japanese economy, which had been mired in decades of deflation-led stagnation.
Bitcoin Hits Record High, Yen Slides
On Monday, the BTC/JPY pair listed on BitFlyer climbed to an unprecedented JPY 18,640,000, marking a remarkable five-day winning streak. This surge in Bitcoin’s value against the yen has captured the attention of investors, contrasting with the BTC/USD pair, which, although trading significantly high at $123,100, remains below its weekend peak of over $125,000. The yen, on the other hand, has weakened, reaching 150.35 per U.S. dollar, its lowest point since August 1.
Sanae’s statements over the weekend have injected optimism into the markets, with the Nikkei index soaring above 48,000 points for the first time. Her advocacy for a return to Abenomics, with its focus on aggressive monetary easing, increased public spending, and structural reforms, has been embraced by investors eager for fiscal easing supported by low interest rates.
The Return of Abenomics
The economic strategy known as Abenomics was introduced to jump-start Japan’s struggling economy through three primary “arrows”: aggressive monetary easing, high public spending, and structural reforms aimed at stimulating investment and growth. Former Prime Minister Shinzo Abe’s policies were credited with pulling Japan out of its deflationary malaise, but the strategy’s long-term effectiveness has been debated.
At a press conference on Saturday, Sanae voiced her support for Abenomics, emphasizing the importance of government-led fiscal and monetary policymaking. She stressed the need for the government and the central bank to collaborate closely to achieve “demand-driven inflation backed by rising wages and corporate profits.” Her comments suggest a determination to navigate Japan’s economic challenges by maintaining accommodative monetary conditions.
Implications for Global Markets
The timing of Sanae’s remarks couldn’t be more opportune for Bitcoin enthusiasts and gold investors. As traders anticipate continued Federal Reserve easing in the coming months, the prospect of renewed Japanese easing is expected to boost demand for cryptocurrencies and precious metals. This anticipation has led to Bitcoin’s impressive gains against the yen, while Japanese equities have also benefited from the renewed optimism.
However, not everyone is convinced that the Japanese yen will remain a safe-haven currency. Over the past two years, traders have been wary of a yen rally driven by potential rate hikes from the Bank of Japan. Some market observers argue that the yen is increasingly being supplanted by the Swiss franc as the preferred safe-haven currency.
Balanced Perspectives and Future Outlook
While Sanae’s commitment to Abenomics has sparked excitement in the markets, it’s important to consider the potential challenges and risks. Japan’s economy is indeed on a “tightrope,” as the Prime Minister described, and the success of her policies will depend on various factors, including global economic conditions and domestic political dynamics.
Critics of Abenomics have argued that the strategy has yet to deliver on its promises of sustained economic growth and increased productivity. Moreover, the high levels of public debt that accompany aggressive fiscal policies could pose long-term risks to Japan’s financial stability.
Nevertheless, Sanae’s approach has been welcomed by those who believe that fiscal and monetary cooperation is essential for addressing Japan’s economic challenges. As the country embarks on this renewed path, the global financial community will closely watch how Japan navigates its economic policies in the coming months.
In conclusion, Bitcoin’s record high against the yen is a testament to the market’s response to Japan’s potential shift in economic strategy. As traders and investors assess the implications of Sanae’s policies, the future of both cryptocurrencies and traditional financial markets will likely be influenced by Japan’s economic trajectory.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
