Japan's new Prime Minister, Sanae Takaichi, unveiled an economic stimulus package on Tuesday aimed at easing inflation pressures on households. The measures include subsidies for electricity and gas charges, as well as regional grants to support small and medium-sized businesses and encourage wage growth.
BitMEX co-founder Arthur Hayes interpreted this development as a precursor to expanded fiat money printing by the Bank of Japan (BOJ). In a Tuesday X post, Hayes stated, "Translation: let's print money to hand out to folks to help with food and energy costs," and emphasized that this could drive Bitcoin's price to $1 million. He also noted that the dynamic might trigger a near-term rise in the Japanese yen, though the yen fell to a one-week low after Takaichi took office as Japan's first female prime minister.
Hayes has previously predicted that a pivot to quantitative easing (QE) by the BOJ could serve as a major catalyst for Bitcoin and risk assets. QE involves central banks purchasing bonds to inject liquidity, lower interest rates, and stimulate spending during financial challenges. Analysts expect a 0.75% interest rate hike by early 2026, but there is no clear consensus on immediate QE implementation. The BOJ's next monetary policy meeting is scheduled for October 29, and the central bank is currently engaged in quantitative tightening, with no plans to switch to QE until it reaches its 2% inflation target.
Meanwhile, macro analysts suggest that Takaichi's pro-stimulus stance may accelerate monetary easing, aligning Japan with the 80% of global banks already pursuing QE efforts. This could increase Bitcoin adoption as investors seek a hedge against currency devaluation and inflation.
In response to these developments, Bitcoin whales are showing renewed optimism. Large investors have opened leveraged long positions on decentralized exchange Hyperliquid, with one whale increasing a Bitcoin long position to $49.7 million and another opening a 6x leveraged long worth $14 million. This activity signals confidence as Bitcoin recovers from a four-month low of $104,000, indicating institutional anticipation of a market rebound fueled by macroeconomic policy shifts.
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