Japan’s newly elected Prime Minister, Sanae Takaichi, is expected to invigorate risk assets, especially among local crypto investors. Following her election victory, the Nikkei index surged to a record closing of 47,734.04, marking a 4.75% increase. Takaichi is set to assume office on October 15 and is recognized for her pro-growth policies, advocating for low interest rates and tax reductions.

During her campaign, she proposed major spending initiatives and a looser monetary policy, which were well received amid concerns over a weakening yen. As Minister of Internal Affairs and Communications, Takaichi showed a favorable stance towards cryptocurrency, supporting the legality of crypto donations to politicians, which are not subject to the same regulations as cash or securities under Japan’s Political Funds Control Act.

With growing economic challenges, traders are shifting to assets like gold and Bitcoin, amid the US government’s shutdown that has not occurred since 2018. Bitcoin recently achieved a new all-time high above $125,700.

“Iron Lady” Takaichi May Encourage Positive Sentiment Among Crypto Investors

Charles d’Haussy, CEO of the dYdX Foundation, mentioned:

“Iron Lady Sanae Takaichi’s election as Japan’s PM is boosting crypto sentiment among local investors through expected looser monetary policies that have already driven Bitcoin to a record high against the yen.”

Her regulatory approach is anticipated to bring clarity and foster the adoption of digital assets in Japan, continuing the trend initiated under former Prime Minister Fumio Kishida’s ‘New Capitalism’ strategy, which sought to enhance the investment environment in the country.