TLDR
Japan’s new Prime Minister Sanae Takaichi has announced an economic stimulus package aimed at mitigating the impact of inflation on households.
The stimulus includes subsidies for electricity and gas bills, as well as regional grants to support wage growth and small businesses.
Arthur Hayes believes the move signals more fiat money printing, which could push Bitcoin to reach $1 million.
Hayes said that the stimulus might lead Japan’s central bank toward monetary easing despite current quantitative tightening efforts.
The Japanese yen fell after Takaichi took office, which added uncertainty to the upcoming interest rate decision.
Japan’s newly appointed Prime Minister, Sanae Takaichi, has announced an economic stimulus plan to support households facing inflation. The package includes subsidies for energy bills and grants to support regional business growth, as well as wage increases. Arthur Hayes, co-founder of BitMEX, believes this move may drive Bitcoin to $1 million.
Economic Stimulus Sparks Bitcoin Outlook
Takaichi’s plan offers financial relief for rising energy costs and promotes wage hikes for small and medium-sized enterprises. The government aims to stabilize household budgets and strengthen domestic demand amid global economic uncertainty. Arthur Hayes responded swiftly, saying, “Let’s print money to hand out to folks to help with food and energy costs.”
Hayes views this move as the beginning of further money printing by Japan’s central bank. He suggested the policy may accelerate Bitcoin’s climb to $1 million. He also noted a potential strengthening of the Japanese yen as a result.
Despite the announcement, the yen dropped to a one-week low after Takaichi assumed office. This market reaction created uncertainty about the Bank of Japan’s future interest rate policy. Analysts are still debating the timeline of a projected 0.75% rate hike by early 2026.
Arthur Hayes Predicts Bitcoin Surge
Arthur Hayes previously warned that Japan’s return to quantitative easing could trigger a surge in Bitcoin and risk assets. Quantitative easing, or QE, involves injecting money into the economy by purchasing government securities, such as bonds. The Bank of Japan is still focused on quantitative tightening but may reverse course soon.
Takaichi’s pro-stimulus stance may influence the central bank to adopt easing policies. Hayes believes such a shift could be a significant catalyst for Bitcoin’s long-term growth. He has consistently linked monetary policy to digital asset appreciation.
Macro analyst Milk Road Macro also supported this idea, stating that 80% of global central banks are already easing. The expectation that Japan will join them adds momentum to Bitcoin’s bullish outlook. Investors now await the Bank of Japan’s monetary policy meeting on October 29.
Bitcoin Whale Activity Signals Market Confidence
Bitcoin recently rebounded after hitting a four-month low of $104,000 last Friday. Large investors, also known as whales, have returned to trading platforms with renewed confidence. Their actions suggest growing market belief in Bitcoin’s upward trajectory.
Three major whale wallets deposited millions on the decentralized exchange Hyperliquid this week. Whale wallet “0x3fce” increased its Bitcoin long position to $49.7 million. Meanwhile, wallet “0x89AB” opened a $14 million leveraged long position.
These moves indicate bullish sentiment fueled by expectations of future easing in Japan. With economic stimulus in play, Bitcoin’s price action remains in focus. Arthur Hayes’s $1 million Bitcoin prediction is gaining renewed attention across the cryptocurrency community.
