Japan emerged as a key market to watch in 2026 after Prime Minister Sanae Takaichi secured a landslide victory that analysts say could bring renewed headwinds for crypto markets.
Takaichi’s Liberal Democratic Party won 316 of 465 seats in the lower house, with coalition partner Japan Innovation Party adding 36 seats, giving the alliance a supermajority.
The result is widely seen as a mandate for Takaichi to pursue stimulus measures, including tax cuts, which could weaken the yen and trigger broader monetary responses with global market implications.
Analysts warn that additional liquidity and potential yen depreciation may prompt capital shifts into Japanese government bonds, putting pressure on US assets and correlated risk markets such as crypto.
“The Takaichi Trade strengthens Japan but puts pressure on the US and Bitcoin,”
Said financial analyst Gugaonchain, citing risks from capital flight and tighter global financial conditions.
He added that stronger demand for Japanese bonds and a robust dollar could strain international equity indices, increasing downside risk for bitcoin after its recent recovery toward $70,000.
However, uncertainty remains over policy direction after Takaichi walked back earlier comments favouring a weak yen, leaving investors cautious about how her agenda will ultimately shape markets.
At the time of reporting, Bitcoin price was $70,859.30.