Japan’s newly elected Prime Minister, Sanae Takaichi, could inject fresh momentum into risk assets, including cryptocurrencies, following her victory, which propelled the country’s benchmark Nikkei index to record levels.
The Nikkei rose 4.75% on Monday, closing at an all-time high of 47,734.04, according to TradingView. The surge came after Takaichi’s election on Saturday, positioning her to become Japan’s first female prime minister when she assumes office on October 15.
Takaichi is widely seen as pro-growth, advocating for low interest rates, tax cuts, and large-scale economic stimulus. Her policies have resonated with voters amid a weakening yen. Notably, she was the only candidate in the race to propose both a substantial spending package and looser monetary policy.
Although Takaichi has not commented directly on Bitcoin, she has shown a pro-innovation approach to cryptocurrency during her time as Minister for Internal Affairs and Communications.
In 2019, she endorsed the legality of crypto donations to individual politicians, noting that cryptocurrency contributions are not subject to the same disclosure requirements as cash or securities under Japan’s Political Funds Control Act.
Meanwhile, traders are increasingly seeking alternatives to the US dollar amid the US government’s first shutdown since 2018, driving renewed inflows into gold and Bitcoin.
Bitcoin surged to a new all-time high above $125,700 on Sunday, with analysts citing macroeconomic factors, including the US government shutdown, as key drivers.
Dubbed the “Iron Lady,” Takaichi could further boost crypto sentiment in Japan. According to Charles d’Haussy, CEO of the dYdX Foundation—the non-profit behind the decentralized trading protocol dYdX—her election may spark renewed demand for digital assets among Japanese investors.
“‘Iron Lady Sanae Takaichi’s election as Japan’s PM is boosting crypto sentiment among local investors through expected looser monetary policies that have already driven Bitcoin to a record high against the yen […].”
Beyond market impact, Takaichi’s “supportive regulatory approach” could provide greater clarity and encourage wider adoption of digital assets in Japan, d’Haussy noted.
Even before the election, Japanese regulators had been exploring more crypto-friendly frameworks under former Prime Minister Fumio Kishida’s “New Capitalism” strategy, aimed at boosting the country’s investment landscape.
In June, Japan’s Financial Services Agency (FSA) proposed a major reclassification of cryptocurrencies, which would open the door for crypto exchange-traded funds (ETFs) and introduce a 20% tax on digital asset income, according to Cointelegraph.
The proposal envisions recognizing crypto as “financial products” under the Financial Instruments and Exchange Act (FIEA)—the same regulatory framework that governs securities and other traditional financial instruments.
