As per Bijiowang, Japan's new government has announced a stimulus package exceeding 17 trillion yen ($110 billion) to counter rising inflation and revive economic growth. The economy shrank by 1.8% in the third quarter of 2025, ending six consecutive quarters of expansion. Analysts suggest the liquidity injection could pressure the yen and redirect capital toward risk assets like Bitcoin (BTC). The stimulus plan supports households amid higher prices while avoiding urgent monetary tightening. The Bank of Japan, however, may raise interest rates as early as December, potentially causing currency volatility and shifting global capital flows. Market analysts predict the liquidity boost will weaken the yen, prompting investors to seek alternative stores of value, including Bitcoin. The timing aligns with a broader easing of global financial conditions, with increased liquidity expected to support Bitcoin's potential for a stronger upward trend.
Japan Unveils $110 Billion Stimulus Plan Amid Economic Contraction
币界网Share
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.