Japan’s Stimulus Policy and Bitcoin’s Bullish Outlook
BitMEX co-founder Arthur Hayes predicts Bitcoin could soar to $1 million following Japan’s announcement of a major economic stimulus package. Prime Minister Sanae Takaichi introduced measures to cushion households from inflation, including subsidies and grants for small businesses. Hayes views this as a sign of future monetary easing that could inject liquidity into global markets. Such expansionary policy, he says, historically benefits scarce digital assets like Bitcoin.
Hayes Connects Money Printing to Bitcoin’s Surge
According to Hayes, increased money supply will push investors toward deflationary assets, especially Bitcoin. He believes Japan’s central bank will eventually resort to quantitative easing to sustain the stimulus, weakening fiat currencies. As liquidity expands globally, Bitcoin’s fixed supply could drive prices into seven-figure territory. This thesis aligns with past cycles when central bank interventions fueled crypto rallies.
Takaichi’s First Economic Move as Prime Minister
The newly elected Prime Minister’s plan marks her first major policy initiative since taking office. By focusing on easing price pressures and encouraging wage growth, Takaichi hopes to stabilize household spending power. However, market observers see mixed signals for interest rate guidance, adding uncertainty to Japan’s economic direction. Investors are now watching how the central bank balances inflation control with growth support.
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Quantitative Easing and Market Expectations
Hayes previously argued that the Bank of Japan’s return to quantitative easing could be the next macro catalyst for Bitcoin. Quantitative easing involves central banks purchasing bonds and injecting capital to stimulate lending. If adopted again, it could expand liquidity and encourage speculative inflows into digital assets. The Bank’s next policy meeting on October 29 will likely shape short-term market sentiment.
Analysts Split on Interest Rate Forecasts
Most analysts anticipate a modest 0.75% interest rate hike by early 2026, though opinions differ on timing. Japan’s central bank is currently pursuing quantitative tightening, but sustained inflationary pressure could force a policy reversal. Pro-stimulus factions argue that easing is inevitable as global peers maintain accommodative stances. Hayes sees this global convergence as a structural tailwind for Bitcoin and other limited-supply assets.
Yen Weakens as Bitcoin Recovers from Market Lows
Following Takaichi’s announcement, the Japanese yen dropped to a one-week low, reflecting investor caution. Meanwhile, Bitcoin rebounded from its four-month low of $104,000, supported by renewed whale accumulation. Large traders on decentralized exchanges like Hyperliquid opened leveraged long positions, signaling revived confidence. This convergence of macro shifts and institutional buying reinforces Hayes’s bullish projection.
Institutional Activity Signals Strengthening Sentiment
Three major crypto whales reportedly returned to active trading this week, depositing millions into decentralized exchanges. Their activity suggests that high-net-worth investors view recent dips as buying opportunities. Combined with ETF inflows and resilient network activity, these signals indicate deep-pocketed investors’ confidence in Bitcoin’s long-term trajectory. Analysts believe that as liquidity rises, Bitcoin could reclaim bullish momentum into year-end.
Outlook: Stimulus Policies May Ignite Bitcoin’s Next Rally
If Japan transitions toward aggressive monetary easing, it could mark the start of another global liquidity cycle. Bitcoin stands to benefit as investors hedge against currency debasement and macro uncertainty. Hayes’s $1 million target, while ambitious, reflects the asset’s growing institutional acceptance and scarcity narrative. As markets brace for the Bank of Japan’s next move, Bitcoin remains the clearest proxy for monetary expansion’s effects.
