Bitcoin Price Faces Contrasting Influences: Japanese Fiscal Shift Sparks Uncertainty

Japan’s ambitious ¥17 trillion fiscal stimulus package, aiming to tackle deflation and boost competitiveness, is generating significant market interest. While Bitcoin price shows signs of weakness, driven by bearish technical indicators and a decline in momentum, Japan’s crypto tax cuts and the plan’s potential impact on global liquidity are seen as positive factors for long-term digital asset adoption. Japan’s fiscal shift comes at a time when global markets are sensitive to currency fluctuations and liquidity shifts. Analysts believe this move could influence risk assets, particularly Bitcoin, which is known to react quickly to such changes in financial conditions. Japan’s bullish stance on cryptocurrencies, further emphasized by their tax reforms, may lead to increased investment in the digital asset market, potentially counteracting the bearish technical outlook.