The post What the Yen’s Devaluation Means for Bitcoin? appeared on BitcoinEthereumNews.com. Japan $135 billion economic stimulus could affect Bitcoin’s price trajectory. The Yen faces devaluation as the Japanese government moves to curb inflation. There is some history between Bitcoin and the Japanese economy. The Japanese government has approved an economic stimulus worth 21.3 trillion yen, equivalent to $135 billion. It is a package that the authorities considered necessary following rising inflation and plans to help the public navigate the rising costs amid regional economic difficulties. No Easy Way Out for Japan Economic expert Robin Brooks noted the fiscal challenges in Japan, highlighting the potential outcomes of the government’s decisions, none of which he believes would leave the economy in a favorable situation.  According to Brooks, Japan’s debt at 240% of GDP leaves the country without positive options. Brooks thinks that stabilizing the Yen by allowing yields to rise would trigger a fiscal crisis. However, keeping interest rates low will cause the Yen to go back into a devaluation spiral.  Despite Brooks’ analysis, the Japanese government’s latest approach includes measures that could help citizens scale through the challenges amid higher US tariffs, which are generally expected to hurt both businesses and average households. The administration’s target is to boost investment in fields like shipbuilding and artificial intelligence. These sectors are considered essential for crisis management and national security, in addition to short-term inflation relief measures. Related Article: End of “Free Money”: Rising Japanese Yields Threaten Global Markets and Crypto Bitcoin’s History With the Japanese Economy Historically, Japan’s fiscal developments translate into notable movements in Bitcoin’s price. The cryptocurrency crashed 20% following a spike in Japan’s 10Y Yield. Analyst Merlijn The Trader who posted on X believes the recent crash in BTC’s price could be linked to Japan’s fiscal crisis. However, he further highlighted that the situation overlaps with Japan’s economic situation, stretching to… The post What the Yen’s Devaluation Means for Bitcoin? appeared on BitcoinEthereumNews.com. Japan $135 billion economic stimulus could affect Bitcoin’s price trajectory. The Yen faces devaluation as the Japanese government moves to curb inflation. There is some history between Bitcoin and the Japanese economy. The Japanese government has approved an economic stimulus worth 21.3 trillion yen, equivalent to $135 billion. It is a package that the authorities considered necessary following rising inflation and plans to help the public navigate the rising costs amid regional economic difficulties. No Easy Way Out for Japan Economic expert Robin Brooks noted the fiscal challenges in Japan, highlighting the potential outcomes of the government’s decisions, none of which he believes would leave the economy in a favorable situation.  According to Brooks, Japan’s debt at 240% of GDP leaves the country without positive options. Brooks thinks that stabilizing the Yen by allowing yields to rise would trigger a fiscal crisis. However, keeping interest rates low will cause the Yen to go back into a devaluation spiral.  Despite Brooks’ analysis, the Japanese government’s latest approach includes measures that could help citizens scale through the challenges amid higher US tariffs, which are generally expected to hurt both businesses and average households. The administration’s target is to boost investment in fields like shipbuilding and artificial intelligence. These sectors are considered essential for crisis management and national security, in addition to short-term inflation relief measures. Related Article: End of “Free Money”: Rising Japanese Yields Threaten Global Markets and Crypto Bitcoin’s History With the Japanese Economy Historically, Japan’s fiscal developments translate into notable movements in Bitcoin’s price. The cryptocurrency crashed 20% following a spike in Japan’s 10Y Yield. Analyst Merlijn The Trader who posted on X believes the recent crash in BTC’s price could be linked to Japan’s fiscal crisis. However, he further highlighted that the situation overlaps with Japan’s economic situation, stretching to…

What the Yen’s Devaluation Means for Bitcoin?

  • Japan $135 billion economic stimulus could affect Bitcoin’s price trajectory.
  • The Yen faces devaluation as the Japanese government moves to curb inflation.
  • There is some history between Bitcoin and the Japanese economy.

The Japanese government has approved an economic stimulus worth 21.3 trillion yen, equivalent to $135 billion. It is a package that the authorities considered necessary following rising inflation and plans to help the public navigate the rising costs amid regional economic difficulties.

No Easy Way Out for Japan

Economic expert Robin Brooks noted the fiscal challenges in Japan, highlighting the potential outcomes of the government’s decisions, none of which he believes would leave the economy in a favorable situation. 

According to Brooks, Japan’s debt at 240% of GDP leaves the country without positive options. Brooks thinks that stabilizing the Yen by allowing yields to rise would trigger a fiscal crisis. However, keeping interest rates low will cause the Yen to go back into a devaluation spiral. 

Despite Brooks’ analysis, the Japanese government’s latest approach includes measures that could help citizens scale through the challenges amid higher US tariffs, which are generally expected to hurt both businesses and average households. The administration’s target is to boost investment in fields like shipbuilding and artificial intelligence. These sectors are considered essential for crisis management and national security, in addition to short-term inflation relief measures.

Related Article: End of “Free Money”: Rising Japanese Yields Threaten Global Markets and Crypto

Bitcoin’s History With the Japanese Economy

Historically, Japan’s fiscal developments translate into notable movements in Bitcoin’s price. The cryptocurrency crashed 20% following a spike in Japan’s 10Y Yield. Analyst Merlijn The Trader who posted on X believes the recent crash in BTC’s price could be linked to Japan’s fiscal crisis. However, he further highlighted that the situation overlaps with Japan’s economic situation, stretching to global liquidity. 

The analyst cited factors such as $3 trillion worth of Japanese capital abroad, rising Japanese yields, and the dumping of US Treasuries, noting how Bitcoin typically front-runs the fallout. Meanwhile, Bitcoin has experienced a 35% pullback from a $126,272 all-time high, which it achieved on October 6, 2025. The cryptocurrency continues to face severe bearish pressure, having lost nearly 7% on Friday, according to data from CoinMarketCap.

Related Article: BTC Price News Today: Bearish Technicals Clash With Bullish Japan News

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Source: https://coinedition.com/japan-approves-135b-stimulus-what-the-yens-devaluation-means-for-bitcoin/

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