Arthur Hayes, the co-founder of BitMEX, has forecasted Bitcoin to reach $1 million following the announcement of economic stimulus measures by Japan’s newly appointed Prime Minister, Sanae Takaichi. Previously, Hayes had projected Bitcoin to climb to $250,000 if the Bank of Japan returned to quantitative easing.
On October 21, Prime Minister Takaichi unveiled a series of stimulus initiatives aimed at easing inflationary pressure on households. Analysts suggest that these measures could direct additional capital into Bitcoin.
Stimulus Measures for Households and Businesses
The stimulus package includes subsidies for electricity and gas bills, along with regional grants designed to reduce price pressures and encourage small and medium-sized enterprises to increase wages.
Money Printing Set to Resume
Hayes interpreted these developments as a signal that Japan’s central bank may expand fiat money printing—a move that could drive Bitcoin toward $1 million.
“Translation: let’s print money to help people pay for food and energy,” Hayes wrote on X (formerly Twitter). He added that this trend could not only push Bitcoin to $1 million but also strengthen the Japanese yen.
Meanwhile, the yen fell to a weekly low on October 21 following Takaichi’s inauguration as Japan’s first female Prime Minister. Investors viewed the move as an uncertain signal regarding the country’s upcoming interest rate decisions, according to Reuters.
A Return to Quantitative Easing on the Horizon
Takaichi’s “stimulative” stance has revived hopes that the Bank of Japan may return to quantitative easing (QE). Hayes previously indicated that such a shift could serve as a major catalyst for Bitcoin and other risk assets.
QE involves central banks purchasing government bonds and injecting money into the economy to lower interest rates and boost spending during challenging financial periods.
The Bank of Japan’s next monetary policy meeting is scheduled for October 29. Most analysts expect the central bank to raise interest rates by 0.75% by early 2026, though exact timing remains uncertain.
Currently, the Bank of Japan is pursuing quantitative tightening with no clear plan to resume QE until inflation hits the 2% target.
However, Takaichi’s stimulative approach could soon push Japan toward easing, as 80% of global central banks are already implementing QE measures, according to investment resource Milk Road Macro.
