Bitcoin hits record highs against yen amid Japan’s new PM plans to revive Abenomics

Bitcoin trading in Japanese yen reached unprecedented levels on October 6, reflecting market expectations that the incoming government under Prime Minister Takaichi Sanae will pursue expansive fiscal measures alongside continuing accommodative central bank policy. As investors priced in a return to pro-growth “Abenomics” strategies, the BTC/JPY rate climbed to a new record, extending bitcoin’s recent outperformance relative to major fiat pairs.

In a widely broadcast press conference, PM Sanae emphasized that coordination between fiscal and monetary authorities would be essential to achieve sustainable, demand-driven inflation. She outlined plans for increased public spending on infrastructure and social programs, coupled with aggressive bond-buying measures by the Bank of Japan. These announcements weighed on the yen, which slid past 150 to the dollar, its weakest point since early August.

Market data from leading domestic exchanges showed bitcoin trading in excess of ¥18.6 million, a level that surpassed previous highs set amid global macro uncertainty. While the BTC/USD pair remained below its all-time peak, bitcoin’s yen-denominated rally underscores the currency’s use as a hedge against potential depreciation of major sovereign currencies under prolonged policy easing.

Japanese equity markets also rose in sympathy. The Nikkei 225 broke through 48,000 points for the first time ever, buoyed by optimism around fiscal stimulus and corporate profit growth. Institutional investors reallocated portions of their portfolios to both domestic stocks and alternative assets as they balanced yield-seeking objectives against safe-haven considerations.

Analysts noted that this dynamic was not unique to Japan. Global demand for bitcoin and gold has been supported by political risks such as the U.S. government shutdown, prompting market participants to diversify liquidity into uncorrelated or internet-native assets. Recent inflows into bitcoin exchange-traded products corroborate the view that institutional adoption is maturing.

Looking ahead, traders are closely watching upcoming BOJ minutes and U.S. fiscal negotiations for signals on whether easing bias will intensify. The trajectory of bitcoin’s performance against the yen may prove an early barometer of broader policy risk sentiment, with further upside potential if yen-weakness expectations persist.