Bitcoin Hit Monday a record against the Japanese yen (JPY), leaving behind the pair of Bitcoin-Dollar while the 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 in early 2013 to relaunch the country’s economy by ending the decades of stagnation led by deflation. This involved the use of three arrows: aggressive monetary relaxation, high public spending and cheap loans and structural reforms to stimulate investments and growth potential.
Speaking on Saturday at a press conference, Sanae clearly indicated that the government would lead the framework of budgetary and monetary policy, echoing growing budgetary domination in the whole world aimed at prioritizing the reflection of demand.
She said that the government and the central bank were to work in close collaboration to achieve “inflation focused on demand sustained by the increase in wages and profits of companies”.
The PM has added that the Japanese economy is on a “tightrope” and that accommodative monetary conditions should be maintained.
His comments aroused hopes for budgety relaxation, supported by low interest rates. According to Reuters, the probability that the rates of increase in BOJ have dropped sharply and the bank is probably more cautious.
Timing could not be more timely for Bitcoin bulls and gold investors. With the price of traders who continued to soften the coming months, the prospect of a renewal of Japanese relaxation is likely to strengthen the demand for cryptocurrencies and precious metals.
Bitcoin strikes record, the slides yen
The Bitcoin-Yen (BTC / JPY) pair listed on Bitflyer reached a record of 18,640,000 JPY, extending its five-day victories sequence, according to Data Source TradingView. Meanwhile, the BTC / USD pair listed Coinbase exchanged $ 123,100, much lower than the record of more than $ 125,000 reached during the weekend, according to Coindesk data.
Sanae’s comments also supported Japanese actions, the Nikkei index exceeding 48,000 points for the first time. The yen slipped to a hollow of 150.35 per US dollar, its weakest since August 1.
Merchants are wary of a yen rally pulled by the increase in potential rates of the Banque du Japan for at least the last two years. However, some observers argue that the Japanese yen is no longer the first relief motto that it was in the past and was increasingly supplanted by the Swiss franc.
