Japan’s ¥17T Stimulus To Add Spark To The Next Crypto Market Rally

Blockzeit

2025-11-17 01:14:38

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Japan’s PM Sanae Takaichi is about to unleash a ¥17 trillion stimulus package, which could serve as an added catalyst to the expected crypto rally before the year’s end.
Will the confluence of this development with other bullish macro events trigger the next Bitcoin or altcoin season in Q4 2025 or Q1 2026?

Japan is about to fire up the markets as investors anticipate a crypto rally before the year ends. Reuters reported last Saturday that the Asian economic superpower is on the verge of releasing a ¥17 trillion ($110.36 billion) stimulus package.

Japan’s ¥17 Trillion Stimulus Package

The move marks the country’s first stimulus package under Prime Minister Sanae Takaichi, who assumed office on October 21 this year. The figures the source confirmed were significantly higher than the ¥10 trillion ($64.92 billion) Nikkei Asia reported more than a week ago.

The package highlights the new administration’s focus on expansionary fiscal policy. This aims to cushion households and businesses from the economic impact of the country’s rising cost of living, especially on basic commodities.

ADVERTISEMENTThe public expects Takaichi’s stimulus package to introduce tax reliefs via bigger income, fuel, and energy tax exemptions. Additionally, local governments anticipate receiving food aid and grants that would help them cope with price pressures.

Moreover, the administration earmarked a large allocation of the stimulus for boosting growth in key industries, including AI (artificial intelligence), semiconductors, shipbuilding, defense, aerospace, cybersecurity, quantum computing, and nuclear fusion.

How Japan Could Rally the Crypto Market

Over the years, governments have employed stimulus packages to jumpstart their struggling economies. It’s a way to reverse recession by boosting aggregate demand, employment, and consumer spending.

ADVERTISEMENTAs shown during the COVID-19 pandemic, fiscal stimulus and quantitative easing (QE) often correlate with surges in crypto prices. The synchronous liquidity injection across the world’s largest markets, especially in the US and Europe, led investors to seek high-risk, high-reward assets like Bitcoin (BTC) and Ethereum (ETH) as they anticipated an ensuing fiat devaluation in the long run following a surge in the public’s purchasing power and added burden in their national debts.

The trend notably culminated in new all-time highs for Bitcoin, which also led to the 2020-2021 altcoin season. Meanwhile, the Bank of Japan’s (BoJ) commitment to ultra-low interest rates, known as Yield Curve Control (YCC), could further fuel demand for risk assets such as crypto.

Other assets that could directly benefit from this scenario are traditional hedges, particularly real estate and gold.

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