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Bitcoin Hits Record High Against Yen as Japan's New PM Sanae Plans to Revive 'Abenomics'
The yen weakened as Sanae said that her government would lead fiscal and monetary policy setting.
Oct 6, 2025, 6:01 a.m.
What to know:
- Prime Minister Takaichi Sanae emphasized the importance of government-led fiscal and monetary policies to achieve demand-driven inflation.
- BTC hit record high against the Japanese yen, as traders priced in fiscal easing and low interest rates.
- The yen weakened against the dollar, while Japanese equities rose.
Bitcoin hit a record high against the Japanese yen (JPY) on Monday, leaving behind the bitcoin-dollar pair as Japan's newly elected Prime Minister Takaichi Sanae voiced support for a return to the pro-stimulus "Abenomics" strategy
Abenomics was an economic strategy introduced by former Prime Minister Shinzo Abe in late 2012 and early 2013 to revive the country's economy by ending decades of deflation-led stagnation. It involved the use of three arrows: aggressive monetary easing, high public spending and cheap borrowing and structural reforms to boost investment and growth potential.
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Speaking at a press conference Saturday, Sanae made it clear that the government would lead fiscal and monetary policy setting, echoing the growing fiscal dominance worldwide aimed at prioritizing demand reflation.
She said that the government and the central bank must work closely to achieve "demand-driven inflation backed by rising wages and corporate profits."
The PM added that the Japanese economy is on a "tightrope," and it is appropriate to maintain accomodative monetary conditions.
Her comments have sparked hopes for fiscal easing, supported by low interest rates. According to Reuters, the probability of the BOJ raising rates this month has dropped sharply, and the bank is likely to be more cautious.
The timing couldn't be more opportune for bitcoin bulls and gold investors. With traders pricing continued Fed easing over the coming months, the prospect of renewed Japanese easing is likely to bolster demand for cryptocurrencies and precious metals.
Bitcoin hits record high, yen slides
The bitcoin-yen pair (BTC/JPY) listed on BitFlyer has reached a record high of JPY 18,640,000, extending its five-day winning streak, according to data source TradingView. Meanwhile, the Coinbase-listed BTC/USD pair traded at $123,100, significantly below the record high of over $125,000 reached over the weekend, according to CoinDesk data.
Sanae's comments also buoyed the Japanese equities, with the Nikkei index topping 48,000 points for the first time. The yen slid to a low of 150.35 per U.S. dollar, its weakest since Aug. 1.
Traders have been wary of a yen rally driven by the Bank of Japan’s potential rate hikes for at least the past two years. However, some observers argue that the Japanese yen is no longer the premier safe-haven currency it once was and has increasingly been supplanted by the Swiss franc.
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Japan’s Higher Rates Puts Bitcoin in the Crosshairs of a Yen Carry Unwind
A stronger yen typically coincides with de-risking across macro portfolios, and that dynamic could tighten liquidity conditions that recently helped bitcoin rebound from November’s lows.
What to know:
- The Bank of Japan is expected to raise interest rates to 0.75% at its December meeting, the highest since 1995, affecting global markets including cryptocurrencies.
- A stronger yen could lead to de-risking in macro portfolios, impacting liquidity conditions that have supported bitcoin's recent recovery.
- Governor Kazuo Ueda indicated a high probability of a rate hike, with officials prepared for further tightening if their economic outlook supports it.
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