Japan’s new prime minister, Sanae Takaichi, could usher in a wave of optimism for risk assets — including cryptocurrencies — as investors anticipate aggressive economic stimulus, low interest rates, and a friendlier regulatory approach to innovation.
The announcement of Takaichi’s election on Saturday sent Japan’s benchmark Nikkei 225 index soaring 4.75%, closing at a record 47,734.04 on Monday, according to data from TradingView. The rally reflects renewed investor confidence that Takaichi — known for her pro-growth, pro-market stance — will inject new life into the Japanese economy when she formally takes office on October 15, becoming Japan’s first female prime minister.
Earlier coverage: Warren Buffett’s Beloved S&P 500 Trails Bitcoin by 88% Since 2020 — Despite Record Highs
Takaichi has long been considered an economic nationalist with a strong commitment to fiscal expansion. During her campaign, she was the only candidate advocating for a major spending package coupled with looser monetary policy, an approach that resonated deeply with voters grappling with a prolonged yen depreciation and sluggish wage growth.
While Takaichi has yet to make a direct statement about Bitcoin (BTC) or the broader crypto sector, her record suggests a pragmatic and innovation-friendly approach. As Minister for Internal Affairs and Communications in 2019, she publicly clarified that cryptocurrency donations to individual politicians were legal, emphasizing that they fall outside the traditional disclosure framework of Japan’s Political Funds Control Act.
That move, seen as progressive at the time, earned her recognition among Japan’s emerging tech and blockchain circles.
Her pro-growth agenda comes as investors worldwide seek alternatives to the US dollar, particularly amid the US government’s ongoing shutdown. Bitcoin, buoyed by these macroeconomic uncertainties, hit a new all-time high above $125,700 over the weekend.
“Iron Lady” Takaichi Could Reignite Crypto Sentiment in Japan
Industry observers believe that Takaichi’s leadership could bolster both domestic and institutional appetite for digital assets.
“‘Iron Lady’ Sanae Takaichi’s election is already boosting investor sentiment,” said Charles d’Haussy, CEO of the dYdX Foundation, in a note to Cointelegraph. “Her expected looser monetary policies have already fueled Bitcoin’s record performance against the yen.”
Beyond monetary easing, d’Haussy added that her “supportive regulatory outlook” could help Japan attract more blockchain and fintech innovation, as policymakers revisit frameworks initially proposed under former Prime Minister Fumio Kishida’s “New Capitalism” initiative.
Earlier this year, Japan’s Financial Services Agency (FSA) proposed significant reforms to reclassify cryptocurrencies as “financial products” under the Financial Instruments and Exchange Act (FIEA) — potentially paving the way for crypto exchange-traded funds (ETFs) and a standardized 20% tax rate on digital asset income.
Such measures could place Japan alongside global leaders like Hong Kong and Singapore in fostering a balanced but progressive regulatory environment for digital assets.
As the yen weakens and Japanese households seek better returns, Takaichi’s policies could drive a domestic shift toward Bitcoin and other alternative assets, positioning Japan once again at the forefront of global crypto innovation.