Newly elected Japanese Prime Minister Sanae Takaichi could inject fresh political momentum into risk assets like cryptocurrencies, as her victory sent the country's benchmark Nikkei index to an all-time high. Japan's Nikkei index rose 4.75% on Monday, hitting a new all-time high at 47,734.04 points at the close, according to TradingView. The gains followed Takaichi's election on Saturday, making her Japan's first female prime minister after taking office on October 15. Takaichi is widely seen as a growth-minded economist, advocating for low interest rates, tax cuts, and massive economic stimulus measures. Her stance has been well-received by voters facing a weakening yen. During the campaign, she was the only candidate proposing both a large government spending package and looser monetary policy. Nikkei historical chart. Source: Cointelegraph/TradingView While Takaichi has yet to make a statement regarding Bitcoin (BTC), she has outlined an innovation-friendly stance on the cryptocurrency during her tenure as Minister of Internal Affairs and Communications. Back in 2019, she supported the legality of cryptocurrency donations to individual politicians, stating that cryptocurrency donations are not subject to the same disclosure as cash or securities donations under Japan's Political Funds Control Act. Source: The Japan News Meanwhile, traders are increasingly seeking a store of value beyond the US dollar amid the first US government shutdown since 2018, leading to a renewed surge in capital into gold and Bitcoin. Bitcoin hit a new all-time high on Sunday, surpassing $125,700, with analysts pointing to macroeconomic tailwinds, including the US government shutdown. Related: Aging Baby Boomers and Global Wealth Expected to Drive Cryptocurrency Growth Through 2100 'Iron Lady' Takaichi Could Boost Crypto Investor Sentiment in Japan Takaichi's election could lead to renewed demand for digital assets among Japanese investors, according to Charles d'Ossey, CEO of the dYdX Foundation, the non-profit behind the dYdX decentralized trading protocol: "Iron Lady Takaichi's election as Japan's prime minister boosts cryptocurrency sentiment among local investors, thanks to expected looser monetary policy, which has already led to a record rise in Bitcoin against the yen [...]. Beyond the markets, her "supportive approach to regulation" could bring greater regulatory clarity and spur adoption of digital assets in the country, d'Ossey added. On the topic: Stablecoin market growth to $300 billion is "rocket fuel" for the crypto rally. Before the election, Japanese regulators explored more crypto-friendly structures as part of former Prime Minister Fumio Kishida's "New Capitalism" strategy, which aimed to stimulate Japan's investment landscape. In June, Japan's Financial Services Agency (FSA) proposed a significant reclassification of cryptocurrencies that would pave the way for the launch of cryptocurrency exchange-traded funds (ETFs) and the introduction of a 20% tax on digital asset income in the country, Cointelegraph reports. The proposal would recognize cryptocurrencies as "financial products" under the Financial Instruments and Exchange Act (FIEA), the same regulatory framework that governs securities and traditional financial products. Journal: Hong Kong Isn't the Loophole Chinese Crypto Companies Think It Is.
