Bitcoin News Today: Weak Yen Ignites Bitcoin Surge Amid Takaichi's Pro-Growth Policies

Japan's newly elected Prime Minister, Sanae Takaichi, has triggered a surge in risk appetite among investors, with early signs pointing to a potential boost for cryptocurrencies and equities. Takaichi, who will assume office on October 15, is widely seen as a pro-growth leader advocating for low interest rates, tax cuts, and large-scale economic stimulus. Her election coincided with the Nikkei 225 index hitting an all-time high of 47,734.04, reflecting renewed optimism in Japanese markets Japan's New PM: Boon For Crypto Markets, Risk Assets^[1]. The benchmark index rose 4.75% on Monday, driven by expectations of her pro-stimulus policies, which align with the "Abenomics" strategy of her predecessor, Shinzo Abe Bitcoin (BTC) News: Hits Record High Against Yen (JPY) - CoinDesk^[2].

Bitcoin (BTC) has mirrored this bullish momentum, reaching an unprecedented high of $125,700 against the U.S. dollar and setting a new record of 18,640,000 yen on the BitFlyer exchange Japan's New PM: Boon For Crypto Markets, Risk Assets^[1]. The cryptocurrency's surge is attributed to Takaichi's perceived support for loose monetary policy and fiscal easing, which have weakened the yen to a 15-month low against the dollar. Analysts note that her stance on maintaining accommodative monetary conditions has reduced the likelihood of a Bank of Japan (BOJ) rate hike in the near term Bitcoin (BTC) News: Hits Record High Against Yen (JPY) - CoinDesk^[2]. The yen's decline has also spurred demand for alternative assets like gold and Bitcoin, as investors seek hedges against currency devaluation .

Takaichi's regulatory approach could further catalyze crypto adoption in Japan. During her tenure as Minister for Internal Affairs and Communications, she advocated for recognizing cryptocurrency donations to politicians as non-disclosable under Japan's Political Funds Control Act, signaling a crypto-friendly stance Japan's New PM: Boon For Crypto Markets, Risk Assets^[1]. More recently, Japan's Financial Services Agency (FSA) has proposed reclassifying cryptocurrencies as "financial products" under the Financial Instruments and Exchange Act, a move that would pave the way for crypto exchange-traded funds (ETFs) and introduce a 20% tax on digital asset income Japan's New PM: Boon For Crypto Markets, Risk Assets^[1]. These developments align with former Prime Minister Fumio Kishida's "New Capitalism" strategy, which aims to modernize Japan's investment landscape Japan's New PM: Boon For Crypto Markets, Risk Assets^[1].

Industry leaders have expressed optimism about Takaichi's potential impact on crypto markets. Charles d'Haussy, CEO of the dYdX Foundation, highlighted that her "supportive regulatory approach" could bring clarity to Japan's crypto sector, fostering innovation and adoption Japan's New PM: Boon For Crypto Markets, Risk Assets^[1]. Meanwhile, macroeconomic tailwinds, including the U.S. government shutdown and global debt concerns, have amplified demand for Bitcoin and gold as safe-haven assets . The yen's weakness, exacerbated by Takaichi's pro-stimulus rhetoric, has further fueled capital inflows into Bitcoin, which traded at $123,100 as of Monday Bitcoin (BTC) News: Hits Record High Against Yen (JPY) - CoinDesk^[2].

The broader implications for risk assets are evident. Japanese equities have surged, with the Nikkei index surpassing 48,000 points for the first time, while the yen's decline has intensified competition with the Swiss franc as a safe-haven currency Bitcoin (BTC) News: Hits Record High Against Yen (JPY) - CoinDesk^[2]. Investors are closely watching whether Takaichi's policies will sustain this momentum, particularly as Bitcoin faces key resistance levels near $122,000 and $124,474 . Analysts caution that while the current environment favors risk assets, volatility remains a concern, especially if geopolitical tensions or regulatory shifts disrupt market sentiment .