Bitcoin hits record high against yen amid Abenomics revival plans
Bitcoin hit a record high against the Japanese yen on Monday, outperforming the BTC/USD pair. The rally was fueled by statements from newly elected Japanese Prime Minister Takaichi Sanae about his readiness to return to the Abenomics strategy.
This economic policy, introduced under former Prime Minister Shinzo Abe, involves aggressive monetary stimulus, increased government spending, and structural reforms to combat deflation.
Sanae clearly outlined a course of action prioritizing fiscal stimulus, stating the need for close coordination between the government and the Bank of Japan to achieve “inflation supported by rising wages and profits.” He also described the economy's “precarious” situation as justifying the continuation of loose monetary policy.
These signals have sharply reduced expectations of an imminent rate hike and fueled hopes for fiscal stimulus. This is creating the perfect environment for Bitcoin bulls: the prospect of policy easing in both the US and Japan is boosting demand for cryptocurrencies.
Market reaction:
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The BTC/JPY pair on BitFlyer reached a record high of 18,640,000 yen.
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The yen fell to 150.35 against the dollar, reaching its lowest since August 1.
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The Nikkei index broke the 48,000 point mark for the first time.
The yen, long considered a safe-haven currency, continues to lose that status amid ultra-low interest rate policies.
Source: cryptonews.net
