WikiBit 2026-02-10 03:03The victory of Prime Minister Sanae Takaichi and the Liberal Democratic Party (LDP) by a supermajori
The victory of Prime Minister Sanae Takaichi and the Liberal Democratic Party (LDP) by a supermajority in the snap elections held on Sunday has propped up Japanese markets. If she presses on with her agenda, analysts believe bitcoin could be affected by renewed headwinds.
Sanae Takaichis Landslide Victory Might Bring Renewed Headwinds to Crypto Markets
Japan is poised to become one of the key nations to watch in 2026 after Sanae Takaichis landslide victory in the snap elections celebrated on Sunday.
The Liberal Democratic Party (LDP), helmed by Prime Minister Takaichi, obtained a supermajority in the lower house of Japans legislature, winning 316 of the 465 seats at stake. Furthermore, an allied party, the Japan Innovation Party, also obtained 36 seats, giving the alliance power to rewrite the Japanese Constitution if it deems it necessary.
With the full support of the Japanese people, Takaichis victory is seen as a mandate, and she is expected to press on with her proposals, including a stimulus package and the elimination of 8% food sales tax for two years.
Nonetheless, these measures can work as a double-edged sword for Japanese citizens, as the increased liquidity in markets could push the yen to slip even further, prompting monetary interventions that could involve a U.S. Treasury sell-off.
According to Gugaonchain, a financial analyst, Takaichis historic bitcoin will cause capital flows from U.S. ETFs to Japanese bons, straining international indexes and pushing them down. As bitcoin has shown a positive correlation with stock indexes, it means that it also risks further declines after the recent recuperations towards the $70K level.
He stated:
“The Takaichi Trade strengthens Japan but puts pressure on the U.S. and Bitcoin. The capital flight to JGBs and a robust dollar create an environment of inevitable adjustments, requiring investors to closely monitor the correlation between U.S. indexes and crypto assets.”
However, Takaichis upcoming policies are still not set in stone, as she hinted at the benefits of a weak yen before the election but later retracted, clarifying that she did not offer clear support for a weak or a strong yen policy.
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