Japan's newly appointed Prime Minister Sanae Takaichi announced economic stimulus measures on Tuesday to address the impact of inflation on households. The package includes subsidies for electricity and gas charges, along with regional grants to support small businesses. In response to these developments, BitMEX co-founder Arthur Hayes predicted that Bitcoin could reach $1 million.
Hayes interpreted the stimulus as a precursor to increased money printing by Japan's central bank. He suggested that the government plans to print money to assist citizens with food and energy costs. The BitMEX founder further posited that this monetary expansion could drive Bitcoin to $1 million while simultaneously causing the Japanese yen to appreciate. Sanae Takaichi became Japan's first female prime minister on October 21, 2025.
Following Takaichi's election, the yen experienced a decline, reaching a one-week low. Investors perceived her appointment as creating mixed expectations regarding upcoming interest rate decisions. The comprehensive stimulus package is valued at ¥13.9 trillion and is designed to provide inflation relief and foster economic growth.
Takaichi's Stance Raises Questions About Bank of Japan Policy Direction
The approach adopted by the new prime minister has the potential to influence the monetary policy decisions of the Bank of Japan. Previously, Hayes had identified a potential pivot by the Bank of Japan towards quantitative easing as a significant catalyst for Bitcoin. Quantitative easing involves central banks acquiring bonds and injecting money into the economy to reduce interest rates.
Recent reports indicated that Japan's Financial Services Agency is considering reforms that would permit banks to hold Bitcoin. The proposed system would enable banks to trade cryptocurrencies in a manner similar to how they trade stocks and bonds. Japan's debt-to-GDP ratio currently stands at 240 percent, a figure that may encourage investors to seek out alternative assets.
The Bank of Japan is presently engaged in quantitative tightening, with no clear indications of reversing this course until its 2 percent inflation target is achieved. The central bank's subsequent monetary policy meeting is slated for October 29. The majority of analysts anticipate an interest rate hike of 0.75 percent by early 2026.
Government Bitcoin Adoption Trend Gains Global Momentum
Prime Minister Takaichi's pro-stimulus stance could potentially accelerate Japan's transition toward monetary easing. Data from the macro investment resource Milk Road Macro indicates that 80 percent of global banks are already implementing quantitative easing policies. This global trend might exert pressure on Japan to adopt similar paths of monetary expansion.
This week, Bitcoin whales were observed depositing tens of millions of dollars onto decentralized exchanges to establish leveraged long positions. One whale wallet, identified as 0x3fce, increased its Bitcoin holdings to $49.7 million. In a separate instance, another wallet initiated a $14 million leveraged position after Bitcoin's price dropped to $104,000 on Friday.
It was previously reported that 15 US states are advancing with plans to establish Bitcoin reserves, with Pennsylvania, Arizona, and New Hampshire proposing allocations of up to 10 percent of public funds. This governmental interest in Bitcoin reserves has largely proceeded without significant mainstream media coverage. The combination of Japan's regulatory developments and the potential for monetary easing could signify another advancement in institutional Bitcoin adoption across developed economies.