Amid ongoing celebrations in Tokyo for new stock market records, Bitcoin has remained surprisingly stagnant. According to recent insights from CryptoQuant, the much-anticipated meeting between Donald Trump, the US President, and Japan’s Prime Minister Sanae Takaichi has failed to stir the crypto market, with Bitcoin trading above $113,000 with no significant change.

Japan’s Nikkei 225 index has reached historic highs, surpassing 50,000 points, attributed to a weak yen and robust export performance. However, the lackluster reaction from Bitcoin signals deeper issues within Japan’s crypto sector.

The Diminishing Role of Japan in Crypto

Data from CryptoQuant indicates a weak correlation coefficient of approximately 0.2 to 0.4 between Bitcoin values and the movements of the Nikkei 225 over the previous year. While developments in US stocks typically affect crypto sentiment heavily, Japan’s political changes seem to have little effect on Bitcoin’s price.

This lack of influence stems from Japan’s marginal stake in the global Bitcoin market, especially when compared to the United States. The report suggests that Japan’s policymakers have not positioned Bitcoin as a critical element of their economic strategy as seen in the US, preventing any significant market engagement.

“If Japan seeks to reclaim relevance in global finance – whether in crypto, AI, or green tech – it must undertake deep structural reform. Until then, even historic summits won’t move the needle in crypto.”

Local Companies Adapt to Crypto Trends

Despite the national hesitation, some Japanese companies are starting to adopt bitcoin strategies. For example, Metaplanet, a company listed in Tokyo, embraced a Bitcoin-centric treasury strategy in 2024 to mitigate effects from the yen’s downturn and sluggish domestic conditions. Currently, they hold 30,823 BTC, making them the fourth-largest corporate Bitcoin treasury globally and the largest in Asia.

Earlier this year, the Japanese gaming company Nexon expanded its Bitcoin holdings by acquiring 1,717 BTC, while Quantum Solutions, an AI firm, announced plans for a Bitcoin reserve of up to 3,000 BTC in the next year.

In contrast, traditional sectors like textiles like Kitabo have begun accumulating Bitcoin as well, opting for a dollar-cost averaging approach.