Bitcoin Hits Record High Against Yen as Japan's New PM Sanae Plans to Revive 'Abenomics'

Bitcoin (BTC) deed a grounds precocious against the Japanese yen (JPY) connected Monday, leaving down the bitcoin-dollar brace arsenic Japan's recently elected Prime Minister Takaichi Sanae voiced support for a instrumentality to the pro-stimulus "Abenomics" strategy

Abenomics was an economical strategy introduced by erstwhile Prime Minister Shinzo Abe successful precocious 2012 and aboriginal 2013 to revive the country's system by ending decades of deflation-led stagnation. It progressive the usage of 3 arrows: assertive monetary easing, precocious nationalist spending and inexpensive borrowing and structural reforms to boost concern and maturation potential.

Speaking astatine a property league Saturday, Sanae made it wide that the authorities would pb fiscal and monetary argumentation setting, echoing the increasing fiscal dominance worldwide aimed astatine prioritizing request reflation.

She said that the authorities and the cardinal slope indispensable enactment intimately to execute "demand-driven ostentation backed by rising wages and firm profits."

The PM added that the Japanese system is connected a "tightrope," and it is due to support accomodative monetary conditions.

Her comments person sparked hopes for fiscal easing, supported by debased involvement rates. According to Reuters, the probability of the BOJ raising rates this period has dropped sharply, and the slope is apt to beryllium much cautious.

The timing couldn't beryllium much opportune for bitcoin bulls and golden investors. With traders pricing continued Fed easing implicit the coming months, the imaginable of renewed Japanese easing is apt to bolster request for cryptocurrencies and precious metals.

Bitcoin hits grounds high, yen slides

The bitcoin-yen brace (BTC/JPY) listed connected BitFlyer has reached a grounds precocious of JPY 18,640,000, extending its five-day winning streak, according to information root TradingView. Meanwhile, the Coinbase-listed BTC/USD brace traded astatine $123,100, importantly beneath the grounds precocious of implicit $125,000 reached implicit the weekend, according to CoinDesk data.

Sanae's comments besides buoyed the Japanese equities, with the Nikkei scale topping 48,000 points for the archetypal time. The yen slid to a debased of 150.35 per U.S. dollar, its weakest since Aug. 1.

Traders person been wary of a yen rally driven by the Bank of Japan’s imaginable complaint hikes for astatine slightest the past 2 years. However, immoderate observers reason that the Japanese yen is nary longer the premier safe-haven currency it erstwhile was and has increasingly been supplanted by the Swiss franc.