Japan's $110 Billion Stimulus Package Could Boost Crypto Markets Amid Economic Revitalization

16.11.2025 06:26

Japan's government, led by Prime Minister Sanae Takaichi, is preparing a $110 billion stimulus package to address economic stagnation and enhance growth sectors, with the official announcement expected by November 21, 2025.

The package includes tax cuts, subsidies, and strategic investments in areas such as artificial intelligence and shipbuilding, aiming to stimulate the economy and induce moderate inflation. Prime Minister Takaichi emphasized close coordination with the Bank of Japan, stating, "We will create a strong economy. This is a matter that affects monetary policy in a big way, so we hope to coordinate closely with the Bank of Japan."

Historical trends indicate that similar fiscal measures have led to increased liquidity, potential yen weakening, and higher activity in cryptocurrency markets. This could result in elevated trading volumes and inflows for risk assets like Bitcoin (BTC) and Ethereum (ETH), as investors seek alternatives in response to expanded monetary conditions.