Bitcoin Surges to Record High Against Yen as Japan’s New PM Revives ‘Abenomics’

Bitcoin reached an all-time high against the Japanese yen on Monday after Japan’s newly elected Prime Minister, Takaichi Sanae, signaled a return to the country’s hallmark pro-stimulus policy known as Abenomics. The announcement echoes late Prime Minister Shinzo Abe’s vision of the country’s economy. The announcement has raised the expectations of a more aggressive fiscal and monetary easing.

Abenomics to Be Revived

Abenomics, first introduced in 2012, aimed to lift Japan out of its decades-long deflationary slump through “three arrows,” expansive monetary policy, increased public spending, and structural reforms.

Sanae stressed at a news conference over the weekend that the government and the Bank of Japan (BOJ) need to work together to create "demand-driven inflation supported by rising wages and corporate profits." She said the economy was "walking a tightrope," which meant that growth still needs an easy monetary policy.

Her remarks immediately impacted financial markets. The yen weakened to 150.35 per U.S. dollar, its lowest level since August, as traders reassessed the likelihood of an imminent rate hike. Reuters reported that the probability of the BOJ tightening policy this month has dropped significantly, reinforcing expectations of continued low interest rates.

Meanwhile, the BTC/JPY pair on BitFlyer surged to a record ¥18,640,000, marking a five-day winning streak, according to TradingView data. In contrast, the BTC/USD pair traded at around $123,100, slightly below its weekend peak of $125,000.

Important Reads: Analyst Predicts Major BTC Corrections Before New All-time Highs

Sanae’s stance also buoyed Japanese equities, with the Nikkei index surpassing 48,000 points for the first time, reflecting investor optimism about fiscal stimulus.

Market analysts say the timing of Japan’s potential policy easing coincides with broader expectations of U.S. Federal Reserve rate cuts, creating a favorable environment for Bitcoin and gold, both viewed as hedges against currency debasement.

However, some observers caution that the yen’s weakening role as a safe-haven asset could mark a longer-term structural shift, with the Swiss franc increasingly taking its place in global markets.

As Japan embraces a renewed round of monetary stimulus, Bitcoin’s surge against the yen underscores growing investor confidence in digital assets amid a world once again turning toward liquidity and reflation.