Japan Plans New Economic Stimulus to Address Inflation Concerns

Key Points:

  • Prime Minister Sanae Takaichi introduces a ¥13.9 trillion economic stimulus
  • Yen depreciation encourages Japanese investors towards cryptocurrencies
  • Potential opportunities and risks in crypto as economic strategies unfold

Prime Minister Sanae Takaichi announced a record-breaking economic stimulus in Japan exceeding ¥13.9 trillion, aimed at combating inflation and invigorating growth on October 22nd.

This measure could weaken the yen and influence global crypto markets, potentially boosting Bitcoin value as anticipated by BitMEX’s former CEO, Arthur Hayes.

Yen Depreciation Fuels Crypto Interest as Economic Moves Unfold

Japan’s government, led by Prime Minister Sanae Takaichi is preparing an economic stimulus package expected to exceed ¥13.9 trillion aimed at countering inflation, investing in growth industries, and enhancing national security. The announcement marks Japan’s continued reliance on fiscal measures to manage economic challenges. Recent reports confirmed the government’s prioritization over surging costs, especially for food and energy.

Japan’s yen weakens amid economic uncertainty, hitting multi-decade lows around USD/JPY 151.85. This event contributes to market fluctuation, affecting Japan’s financial stability. Potential depreciation may prompt investors to seek safer assets, including cryptocurrencies like Bitcoin. Historically, shifts in yen values have prompted further fiscal stimulus and yen weakening that could encourage Japanese investors to allocate more to cryptocurrencies during fiscal stimuli.

This means printing money to distribute to people for food and energy cost subsidies. These cost increases are because they printed too much money before. It’s crazy, but anyway: the Yen to 200, Bitcoin could rise to $1 million.

Market Data and Future Insights

Did you know? In past Japanese fiscal stimuli periods, depreciation of the yen against major currencies often coincided with spikes in Bitcoin trading volumes, reflecting a strategic shift by Japanese investors towards alternative assets as a hedge against inflation and currency instability.

Bitcoin’s current price stands at $108,013.33, with a market cap of $2.15 trillion, according to CoinMarketCap data. The cryptocurrency saw a 24-hour trading volume rise to $102.67 billion, even as its price decreased by 0.02% in the last day, reflecting broader market fluctuations.

bitcoin-daily-chart-3878

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 07:29 UTC on October 22, 2025. Source: CoinMarketCap

Coincu analysts anticipate further yen depreciation might boost interest in cryptocurrencies. Historical trends suggest rising demand for digital assets during yen downturns, while technological advancements continue to support blockchain adoption, presenting potential opportunities and risks for investors amid economic recalibrations.

Source: https://coincu.com/markets/japan-economic-package-inflation-crypto/