2025-12-27 01:22:02

Japanese Finance Minister Sanae Takaichi recently dropped a heavy bombshell—next year could see Japan's first primary budget surplus in 28 years. Once this news broke, the market instantly exploded. Japan, which has relied on printing money and fiscal stimulus to support its economy for decades, suddenly announcing a "belt-tightening" policy—how did this happen?

The logic behind this is actually quite straightforward. Japan's December CPI in Tokyo plummeted to 2.0%, indicating that inflation is gradually stabilizing from an out-of-control situation. The Bank of Japan can finally breathe a sigh of relief, but the problem is— the yen has actually become weaker. As Japan begins to tighten fiscal policy and reduce stimulus, global capital is watching cautiously, and the yen continues to weaken.

This is the interesting part. What does a weaker yen mean? It indicates that funds are seeking alternative safe-haven assets. Gold and the crypto markets immediately became new safe havens for capital. Especially in environments like Ethereum with low Gas fees, highly volatile tokens (whether mainstream coins or Meme coins) suddenly gained new appeal—aggressive traders are starting to use these high-volatility assets to hedge against yen risk.

But Japan's move is fundamentally a response to a bigger storm—the United States. Trump's "America First" policy is about to be fully implemented, with a combination of strong growth and high tariffs already in the pipeline. Japan's tightening measures aim not only to stabilize domestic fiscal confidence but also to prepare for financial shocks from across the Pacific. Global capital flows are being re-priced.

A country with a 28-year continuous deficit suddenly hits the brakes—ahead lies a fog of inflation, beside it a policy storm from the U.S.—can this brake really hold? The market is searching for answers. If Japan truly moves toward fiscal contraction, how will the yen perform? How long can the risk premium for safe-haven assets in crypto last? These questions will determine the next direction of global capital flows. Is your investment portfolio ready to face this wave of change?

ETH0,42%

MEME1,3%

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BlockImposter

· 5h ago

Japan starts tightening its belt, but the crypto market is actually getting excited? I can't quite grasp this logic. When the yen weakens, money flows into crypto—just that? Feels a bit like a gambler's mindset. First surplus in 28 years... sounds impressive, but what's the reality? Can it withstand the financial shocks from the US? Speaking of which, if Japan really implements fiscal austerity, will institutional investors over there also start bottom-fishing BTC? Instead of worrying about the yen, it's better to watch US Treasury yields... that's the real kingpin determining the flow.

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MEVSupportGroup

· 12-27 01:51

The yen is weakening, and we need to think carefully. Just hoarding coins isn't enough; we need to see clearly where this wave of funds is fleeing to.

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LuckyHashValue

· 12-27 01:51

Is the yen's weakness really giving a boost to cryptocurrencies? Do we even need to ask where this wave of safe-haven funds will flow?

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SmartContractRebel

· 12-27 01:37

The weakening of the Japanese Yen directly benefits ETH and various tokens. This wave of safe-haven capital inflow will indeed give a boost. But the question is, can Japan really stick to tightening this time? It seems like they are compromising under pressure from U.S. policies, and will have to continue easing later on.

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