Arthur Hayes, co-founder of BitMEX, has launched a bold projection of Bitcoin (BTC) reaching $1 million. This prediction follows the announcement by Japan’s new Prime Minister, Sanae Takaichi, of a stimulus package. According to a post by Hayes on X, Japan’s economic stimulus and Bitcoin are directly linked by the imminent printing of fiat money.
Japan’s new Prime Minister, Sanae Takaichi, announced measures to alleviate the impact of inflation on households. The package includes subsidies for electricity and gas tariffs. It will also provide regional grants for small and medium-sized businesses to raise wages. Arthur Hayes interpreted this news directly. “Translation: let’s print money,” commented the BitMEX co-founder in his post on the social network X, forecasting the million-dollar mark for BTC.
The Japanese economy reacted immediately to the news. The yen fell to its lowest level in a week following Takaichi’s inauguration. Investors see her “pro-stimulus stance” as a mixed signal. Hayes had previously noted that a pivot by the Bank of Japan (BoJ) toward quantitative easing (QE) would be a catalyst. Although the BoJ is technically still in a tightening (QT) cycle, this new stimulus policy could force a return to money printing.
Are Japanese investors ready to massively adopt BTC?
Hayes’s thesis focuses on capital flight from the yen. If the Japanese central bank floods the market with new money to finance the subsidies, the currency’s value could plummet. Japanese investors would seek to protect their savings from devaluation. Scarce assets like Bitcoin present themselves as the primary safe-haven asset. This capital migration towards cryptocurrencies would represent a massive wave of demand that would drive the price.
Hayes’s $1 million prediction is one of the most bullish, but it is based on macroeconomic action. The Bank of Japan’s next monetary policy meeting is set for October 29. Investors will closely watch for any sign of a pivot toward quantitative easing. If the new Prime Minister follows through on her agenda, the relationship between Japan’s economic stimulus and Bitcoin could define the market’s next major uptrend.
