Bitcoin He reached a record of a record against the Japanese Yen (JPY) on Monday, leaving behind the Bitcoin-Dollar couple as the newly elected prime minister of Japan, Takaichi Sanae, expressed his support for a return to the pro-stimulus strategy “Abenomics”
Abenomics was an economic strategy introduced by former Prime Minister Shinzo Abe at the end of 2012 and early 2013 to relive the country’s economy by ending decades of stagnation directed by deflation. It involved the use of three arrows: aggressive monetary flexibility, high public spending and cheap loans and structural reforms to boost investment and growth potential.
Speaking at a press conference on Saturday, Sanae made it clear that the Government would lead the environment of fiscal and monetary policies, echoing the growing fiscal domain worldwide aimed at prioritizing the reflection of demand.
She said that the Government and the Central Bank must work in close collaboration to achieve “inflation driven by the demand backed by the increase in wages and corporate profits.”
The prime minister added that the Japanese economy is in a “tightrope”, and it is appropriate to maintain monetary accommodation conditions.
His comments have caused hope for fiscal flexibility, backed by low interest rates. According to Reuters, the probability that BC elevation rates this month have been reduced considerably, and the bank is likely to be more cautious.
The moment could not be more timely for Bitcoin bulls and gold investors. Since merchants continued to feed in the coming months, it is likely that the perspective of the renewed decrease of the Japanese drives the demand for cryptocurrencies and precious metals.
Bitcoin hits high record, yen slides
The Bitcoin-Eye (BTC/JPY) pair listed in Bitflyer has reached a JPY record of 18,640,000, extending its five-day winning streak, according to Data Source TradingView. Meanwhile, the PAR BTC/USD that is quoted in Coinbase traded at $ 123,100, significantly below the maximum record of more than $ 125,000 reached during the weekend, according to Coindesk data.
Sanae’s comments also promoted Japanese actions, with the Nikkei index that exceeded 48,000 points for the first time. The Yen slid at a minimum of 150.35 per US dollar, is weaker since August 1.
The merchants distrust a yen rally driven by the potential tasks of the Bank of Japan for at least in the last two years. However, some observers argue that the Japanese Yen is no longer the main refuge currency that once was and has been supplanted more and more by the Swiss Franc.
