Bitcoin Hit a record high against the Japanese Yen (JPY) Monday, leaving the Bitcoin dollar couple as Japan’s newly elected Prime Minister Takaichi Sanae expressed support for a return to Pro-Stimulus “Abenomics” strategy
Abenomics was a financial 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 increase investment and growth potential.
When he spoke at a press conference on Saturday, Sanae made it clear that the government would lead fiscal and monetary policy environment and repeat the growing fiscal dominance worldwide aimed at prioritizing demand deposits.
She said the government and the central bank must work closely to achieve “demand -controlled inflation supported by rising wages and the company’s profits.”
PM added that the Japanese economy is on a “tightening” and it is appropriate to maintain the accommodating monetary conditions.
Her comments have given rise to hope for fiscal relief, supported by low interest rates. According to Reuters, the likelihood of Boj raising rates this month has fallen sharply and the bank is probably more cautious.
The timing could not be more appropriate for Bitcoin Bulls and Gold Investors. As the traders who continued to be fed to ease in the coming months, the prospect of renewed Japanese easing is likely to strengthen the demand for cryptocurrencies and precious metals.
Bitcoin hits record high, yen slides
Bitcoin-Yen-Paret (BTC/JPY), listed on Bitflyer, has reached a record height of JPY 18,640,000, which extends its five-day winning strip, according to data source trading. Meanwhile, the coinbase-listed BTC/USD couple for $ 123,100 traded significantly below the record height of over $ 125,000 reached over the weekend, according to Coindesk data.
Sanae’s comments also bent the Japanese shares, with the Nikkei index of topped 48,000 points for the first time. Yen slid to a low level of 150.35 per US dollar, the weakest since August 1st.
Dealers have been wary of a Yen -rally driven by the Bank of Japan’s potential rate hikes for at least the last two years. However, some observers claim that the Japanese yen is no longer the leading secure-harbor currency it was once and increasingly replaced by the Swiss franc.
