Japan’s government has submitted three major fiscal bills under Prime Minister Sanae Takaichi, combining record spending, tax cuts, and expanded debt issuance. The 2026 budget totals ¥122.3 trillion ($793 billion), with ¥29.6 trillion in new government bonds set to cover the shortfall. At the same time, tax reforms will reduce revenue by roughly ¥700 billion annually, while Japan’s national debt remains around 250% of GDP — the highest among developed economies.

For crypto markets, the short-term risk centers on the Bank of Japan (BOJ). Analysts increasingly expect a rate hike as early as April, with markets pricing high odds of tightening. Historically, BOJ hikes have triggered sharp Bitcoin pullbacks as yen carry trades unwind. Bitcoin, currently trading near $67,000 and well below its 2025 peak, could face renewed volatility if higher rates strengthen the yen and force leveraged positions to unwind.