Japan's $135B Stimulus Shakes Markets, Yen, and Crypto

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Nov 21, 2025

Japan approves a ¥21.3 trillion stimulus to fight inflation, including tax cuts and direct payments. The move weakens the yen, raises fiscal concerns, and impacts both traditional and crypto markets.

Japan has launched a ¥21.3 trillion ($135 billion) stimulus package, its largest since the pandemic, to counter inflation and support households. The plan includes ¥17.7 trillion in general spending, ¥2.7 trillion in tax cuts, and direct payments such as ¥20,000 per child, along with subsidies for gas and electricity. Additional funds are allocated for regional support, defense, and crisis-response measures. The stimulus is expected to lower inflation and boost GDP growth, but markets have reacted with concern over increased government borrowing, leading to a weaker yen and higher bond yields. The yen's decline to 157.20 against the US dollar has raised questions about global currency stability and increased interest in cryptocurrencies as alternative assets. The stimulus and fiscal expansion are anticipated to have significant effects on both traditional and digital asset markets, with observers noting potential regulatory adjustments and increased volatility in the Japanese yen.