Bitcoin $1M on Japan’s $92B Stimulus Amid Recession Risk
Japan’s proposed $92B stimulus plan includes power and gas subsidies, regional grants and wage incentives funded via quantitative easing. BitMEX co-founder Arthur Hayes argues that this surge in liquidity, coupled with expected Bank of Japan easing, could push Bitcoin to $1 million. Analytics firm Milk Road Macro notes that 80% of global banks are already easing, further supporting risk assets. The next BoJ meeting on October 29 is critical for confirmation of quantitative easing. However, crypto analyst Willy Woo warns that an economic downturn could trigger an unpredictable Bitcoin sell-off. Traders should monitor yen weakness, liquidity flows and recession risk when positioning for the next market cycle.
Bullish
Japan’s large-scale stimulus and anticipated Bank of Japan easing point to significant liquidity injections, historically a key driver for asset price gains. With global banks already easing and the yen weakening, Bitcoin stands to benefit from increased capital flows seeking yield. While Willy Woo’s warning about recession-driven volatility underscores potential short-term pullbacks, the overall impact remains positive as traders capitalize on excess liquidity and monetary policy shifts.