Arthur Hayes Says Japan Economic Stimulus May Drive Bitcoin Price to Seven Figures
Japan's newly appointed Prime Minister Sanae Takaichi announced economic stimulus measures on Tuesday to address inflation impacts on households. According to Cointelegraph, the package includes subsidies for electricity and gas charges plus regional grants to support small businesses. BitMEX co-founder Arthur Hayes responded to the announcement by predicting Bitcoin could reach $1 million.
Hayes interpreted the stimulus as a precursor to increased money printing by Japan's central bank. He wrote on X that the government plans to print money to help citizens with food and energy costs. The BitMEX founder added this monetary expansion could push Bitcoin to $1 million while also causing the Japanese yen to rise. Takaichi became Japan's first female prime minister on October 21, 2025.
The yen fell to a one-week low following Takaichi's election. Investors viewed her appointment as creating mixed expectations for upcoming interest rate decisions. The stimulus package totals ¥13.9 trillion and targets inflation relief and economic growth.
Takaichi Stance Raises Questions About BOJ Policy Direction
The new prime minister's approach could influence Bank of Japan monetary decisions. Hayes previously identified a potential BOJ pivot to quantitative easing as a major Bitcoin catalyst. QE involves central banks purchasing bonds and injecting money into the economy to lower interest rates.
CoinDesk reported Japan's Financial Services Agency is considering reforms to let banks hold Bitcoin. The proposed system would allow banks to trade cryptocurrencies similarly to stocks and bonds. Japan's debt-to-GDP ratio stands at 240 percent, which may drive investors toward alternative assets.
The BOJ currently pursues quantitative tightening with no clear plans to reverse course until hitting its 2 percent inflation target. The central bank's next monetary policy meeting is scheduled for October 29. Most analysts expect a 0.75 percent interest rate hike by early 2026.
Government Bitcoin Adoption Trend Gains Global Momentum
Takaichi's pro-stimulus position may accelerate Japan's shift toward monetary easing. Macro investment resource Milk Road Macro noted 80 percent of global banks already pursue QE policies. This could pressure Japan to follow similar monetary expansion paths.
Bitcoin whales deposited tens of millions on decentralized exchanges to open leveraged long positions this week. Whale wallet 0x3fce increased its Bitcoin position to $49.7 million. Another wallet opened a $14 million leveraged position after Bitcoin dropped to $104,000 on Friday.
We reported that 15 US states are moving forward with plans for Bitcoin reserves, with Pennsylvania, Arizona, and New Hampshire proposing allocations up to 10 percent of public funds. This government interest in Bitcoin reserves occurred largely without mainstream media attention. Japan's regulatory developments combined with potential monetary easing could represent another step in institutional Bitcoin adoption across developed economies.
