Bitcoin (BTC) saw a significant surge against the Japanese yen (JPY) following the historic electoral victory of Sanae Takaichi, known as Japan”s “Iron Lady.” On February 8, 2026, Takaichi”s Liberal Democratic Party (LDP) achieved an unprecedented win in snap parliamentary elections, securing between 274 and 326 out of the 465 seats in the lower house, a record margin in Japan”s post-war history.
The swift market response reflected growing investor confidence in Takaichi”s pro-growth policies. The dollar/yen pair rose by 0.2%, reaching 157, while the BTC/JPY trading pair experienced a notable increase of nearly 5%. This phenomenon, dubbed the “Takaichi trade,” is driven by anticipated fiscal stimulus and a commitment to loose monetary policies, which are expected to enhance liquidity in the markets.
Japanese equities are already benefiting from this momentum, reaching record highs, while government bonds and the yen have faced some downward pressure. US officials, including Treasury Secretary Scott Bessent, hailed Takaichi”s victory as “historic,” underscoring the importance of US-Japan relations under her leadership. President Donald Trump also voiced his support, praising her leadership qualities.
Takaichi”s electoral success is viewed as a green light for advancing reforms in Japan”s cryptocurrency landscape. Currently, the nation imposes taxes on cryptocurrency gains as miscellaneous income at rates that can reach up to 55%. This taxation framework has led some investors to look for opportunities outside Japan, despite its position as a leader in blockchain adoption.
Anticipated discussions for fiscal year 2026 may focus on reforms that could facilitate a friendlier environment for cryptocurrencies. Analysts suggest that Takaichi”s willingness to collaborate with crypto-friendly opposition parties, such as the Japan Innovation Party and the Democratic Party for the People, could finally pave the way for significant changes by 2028.
While Takaichi”s campaign did not prominently feature cryptocurrency, her aggressive fiscal policies, reminiscent of her mentor Shinzo Abe”s “Abenomics,” may foster a supportive economic climate for risk assets, which includes Bitcoin, Ethereum, and local digital projects.
However, uncertainties linger. Japan”s national debt now exceeds 250% of its GDP, raising concerns about fiscal sustainability. Critical appointments in Takaichi”s cabinet and their stance on regulatory priorities will play a vital role in shaping the momentum of crypto reforms. Finance Minister Katsunobu Kato”s ongoing involvement may ensure policy continuity, yet his limited focus on cryptocurrency matters could dampen the pace of transformative changes.
Moreover, Digital Minister Masaki Taira has not yet clarified his position regarding cryptocurrencies or Web3 technologies. Nevertheless, initiatives proposed by the Financial Services Agency, aligned with Takaichi”s strong political mandate, indicate a potential turning point for Japan”s digital asset sector. Successful reforms could lead to clearer regulatory frameworks, tax relief, and legal recognition for cryptocurrencies, establishing a more innovation-friendly ecosystem.
