Bitcoin Reaches Record High Against Yen Amid Japan’s Pro-Stimulus Policies
Bitcoin has reached a record high against the Japanese yen amid support for the pro-stimulus "Abenomics" strategy by Japan's newly elected Prime Minister, Takaichi Sanae. This strategy involves aggressive monetary easing, high public spending, and structural reforms.
- The bitcoin-yen pair (BTC/JPY) hit JPY 18,640,000, continuing a five-day winning streak.
- Sanae emphasized the need for government-led fiscal and monetary policy to achieve demand-driven inflation with rising wages and corporate profits.
- The probability of the Bank of Japan raising rates this month has decreased, suggesting continued accommodative monetary conditions.
- This situation is favorable for bitcoin bulls and gold investors as expectations of renewed Japanese easing could increase demand for cryptocurrencies and precious metals.
- The yen weakened to 150.35 per U.S. dollar, its lowest since August 1, while the Nikkei index exceeded 48,000 points for the first time.
Traders remain cautious about the yen due to potential Bank of Japan rate hikes, despite its declining status as a premier safe-haven currency.