Bitcoin Hits Record High Against Yen as Japan's New PM Sanae Plans to Revive 'Abenomics'

Bitcoin (BTC) hit a record high against the Japanese yen (JPY) on Monday, leaving behind the bitcoin-dollar pair as Japan's newly elected Prime Minister Takaichi Sanae voiced support for a return to the pro-stimulus "Abenomics" strategy Abenomics was an economic strategy introduced by former Prime Minister Shinzo Abe in late 2012 and early 2013 to revive the country's economy by ending decades of deflation-led ￰0￱ involved the use of three arrows: aggressive monetary easing, high public spending and cheap borrowing and structural reforms to boost investment and growth ￰1￱ at a press conference Saturday, Sanae made it clear that the government would lead fiscal and monetary policy setting, echoing the growing fiscal dominance worldwide aimed at prioritizing demand ￰2￱ said that the government and the central bank must work closely to achieve "demand-driven inflation backed by rising wages and corporate profits." The PM added that the Japanese economy is on a "tightrope," and it is appropriate to maintain accomodative monetary ￰3￱ comments have sparked hopes for fiscal easing, supported by low interest ￰4￱ to Reuters, the probability of the BOJ raising rates this month has dropped sharply, and the bank is likely to be more ￰5￱ timing couldn't be more opportune for bitcoin bulls and gold ￰6￱ traders pricing continued Fed easing over the coming months, the prospect of renewed Japanese easing is likely to bolster demand for cryptocurrencies and precious ￰7￱ hits record high, yen slides The bitcoin-yen pair (BTC/JPY) listed on BitFlyer has reached a record high of JPY 18,640,000, extending its five-day winning streak, according to data source TradingView.

Meanwhile, the Coinbase-listed BTC/USD pair traded at $123,100, significantly below the record high of over $125,000 reached over the weekend, according to CoinDesk data. Sanae's comments also buoyed the Japanese equities, with the Nikkei index topping 48,000 points for the first ￰8￱ yen slid to a low of 150.35 per U. S. dollar, its weakest since ￰9￱ have been wary of a yen rally driven by the Bank of Japan’s potential rate hikes for at least the past two years.

However, some observers argue that the Japanese yen is no longer the premier safe-haven currency it once was and has increasingly been supplanted by the Swiss franc.