Japan is entering a new era – both politically and economically. The victory of Sanae Takaichi, who will become the country’s first female prime minister on October 15, has triggered a wave of optimism across markets. Analysts expect her pro-growth agenda to boost investors’ appetite for risk — including investments in cryptocurrencies.

Markets celebrate election victory

Japan’s Nikkei index surged 4.75% on Monday to a record 47,734.04 points following Takaichi’s election. According to TradingView data, this historic high reflects investors’ confidence in the new government’s economic direction.

Takaichi gained support through her clear pro-growth platform — advocating low interest rates, tax cuts, and massive stimulus packages. Both households and businesses struggling with the weakening yen welcome these policies. During her campaign, she was the only candidate openly promising extensive government spending and looser monetary policy.

A prime minister open to innovation

Although Takaichi hasn’t commented publicly on Bitcoin, her track record suggests an openness to cryptocurrencies and technological innovation. As Minister of Internal Affairs and Communications in 2019, she backed the legality of crypto donations to politicians, stating they don’t fall under the same disclosure rules as cash or securities.

Analysts believe she could carry this “innovation-friendly” stance into national policy — reinforcing Japan’s position as one of the most regulated yet “crypto-friendly” markets in the world.

Cryptocurrencies in focus for investors and regulators

Even before the election, Japan had taken steps to open its digital asset market. Under former Prime Minister Fumio Kishida’s “New Capitalism” strategy, regulators began preparing a more favorable environment for crypto businesses.

In June, the Financial Services Agency (FSA) proposed a major reclassification of cryptocurrencies, paving the way for crypto ETFs and a unified 20% tax on digital asset income. The assets would be officially recognized as “financial products” under the Financial Instruments and Exchange Act (FIEA).

Bitcoin hits record high as investors seek alternatives

With the U.S. government facing its first shutdown since 2018, investors are turning to safe-haven assets outside the dollar. This has fueled capital flows into gold and Bitcoin, which hit a record high of $125,700 on Sunday.

Global implications for the crypto market

Japan remains one of the world’s largest crypto markets, meaning any political or regulatory shift could have global consequences. If Takaichi delivers on her promises and supports pro-growth crypto reforms, capital flows could surge both into Japanese exchanges and international projects.

Sources:

https://www.dw.com/en/sanae-takaichi-what-to-expect-from-japans-new-iron-lady/a-74253077

https://www.tradingview.com/chart/JBpUV8Q8/?symbol=BITSTAMP%3ABTCUSD

https://cointelegraph.com/news/crypto-donations-to-politicians-are-unregulated-in-japan-report

https://edition.cnn.com/politics/live-news/government-shutdown-trump-09-30-25

https://cointelegraph.com/news/us-government-shutdown-crypto-market-bottom