Japan's latest budget proposal has sparked heated discussions in the market. After the announcement of the record-high budget of 122.3 trillion yen, which on the surface is a commitment to "maintain fiscal discipline," the actual implementation involves significant expansionary fiscal policies—this stark contrast has directly impacted the yen exchange rate, while the cryptocurrency market has instead encountered new opportunities.

From an economic logic perspective, Japan is caught in a difficult dilemma: inflationary pressures and slowing economic growth force the government to implement expansionary fiscal measures, but large-scale government bond issuance raises concerns about fiscal sustainability, leading to yen sell-offs. The depreciation of the yen then pushes up import costs, further fueling inflation—this cycle seems intractable.

However, markets often find an exit. As the yen continues to weaken, Japanese investors will eagerly seek hedging assets. Historical cases have already demonstrated this: during Japan's 17 trillion yen stimulus package in 2021, large amounts of funds flowed into cryptocurrencies like Bitcoin, significantly boosting trading volumes in Asia-Pacific. The current budget scale is more than seven times that amount, implying that potential capital inflows could grow exponentially.

What’s more noteworthy is that the Japanese government has a relatively open attitude toward crypto innovation, possibly adjusting the tax system to lower barriers and costs for investors. This effectively paves the way for large capital inflows into the crypto market.

In simple terms, the driving force behind this round of market activity is not just liquidity spillover, but "yen depreciation-driven risk aversion demand." Understanding this underlying logic will be more helpful in grasping the market rhythm.