Why Japan’s “Takaichi Trade” Could Pressure the Crypto Market Despite Post-Election Rebound
Japan's snap election victory for Prime Minister Sanae Takaichi initially sparked a market surge, with the Nikkei 225 hitting record highs and Bitcoin briefly exceeding $72,000. However, the "Takaichi trade"—characterized by fiscal expansion, a weaker yen, and loose monetary policy—is now tightening global liquidity. This shift is prompting investors to rebalance portfolios, moving capital into Japanese assets as bond yields rise, which in turn contributed to recent pullbacks in U.S. equities and crypto. Bitcoin's decline is linked to futures unwinding and reduced leverage rather than on-chain weakness. Although long-term regulatory support for digital assets remains possible, short-term downside risks persist due to ongoing global risk reassessment and liquidity adjustments.
bitcoinist02/10 02:02
