Japan PM candidate's fiscal stance weakens yen, pressures Bitcoin rally

Comments from Takaichi Sanae, a leading candidate for Japan's next prime minister, signaling a continuation of Abenomics are slowing Bitcoin's rally, according to an analysis by Coindesk. The outlet noted that her remarks have raised concerns about an increased supply of government bonds under an expansionary fiscal policy, pushing up Japanese bond yields. Higher bond yields increase borrowing costs and dampen risk appetite, creating downward pressure on assets like stocks and cryptocurrencies. Coindesk added that Takaichi's stance has also lowered expectations for a Bank of Japan interest rate hike, leading to a weaker yen and a stronger U.S. dollar. The rising U.S. Dollar Index has subsequently impacted Bitcoin's rally, while gold has maintained its safe-haven status and continued to rise.