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Key Points: Japan’s new budget spurs market reactions, impacts currency rates. Yen falls to a 10-month low post-stimulus announcement. Fiscal expansion sparks debate on Japan’s economic stability. Japan’s Cabinet, led by Prime Minister Sanae Takaichi, approved a historic ¥17.7 trillion supplementary budget to address inflation and voter discontent, impacting the yen and bond yields. The substantial stimulus raises concerns over Japan’s fiscal stability, affecting the yen’s value and long-term bond yields, with potential ripple effects on the crypto market dynamics. Main Content Japan’s Cabinet, led by Prime Minister Sanae Takaichi, approved a ¥17.7 trillion (~$112 billion) budget to tackle inflation and discontent. The plan includes ¥2.7 trillion in tax cuts and ¥7.2 trillion for strategic sectors like AI. Fiscal expansion has led to the depreciation of the yen and increased bond yields, raising investor concerns about Japan’s economic stability. Takaichi stated, My goal is to pursue a responsible and proactive fiscal policy and keep living costs in check. The measures have prompted varied reactions from market observers. As Finance Minister Satsuki Katayama noted, Tokyo may intervene against excessive forex volatility in response to these changes. Fiscal Impact and Crypto Market Implications Did you know? The recent stimulus package marks a 27% increase from the ¥13.9 trillion budget in 2024, reflecting Japan’s heightened efforts to stabilize the economy amid prolonged inflationary pressures. As of November 21, Bitcoin stands at $85,696.38 with a market cap of $1.70 trillion, holding a 58.12% market dominance. 24-hour trading volume is $99.71 billion, declining by 7.41% in 24 hours, and down 25.98% over 90 days. [Source: CoinMarketCap] Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 06:19 UTC on November 21, 2025. Source: CoinMarketCap Coincu Analysis: This fiscal shift suggests potential upticks in JPY volatility, indirectly influencing sectors including crypto markets. While fiscal moves like these bolster strategic…

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Filed under: News - @ November 21, 2025 6:24 am