Markets and Crypto Eye Policy Reforms As Japan’s Sanae Takaichi Secures Historic Victory

Japan’s Prime Minister Sanae Takaichi, often dubbed the country’s “Iron Lady,” has secured a historic landslide victory in the February 8, 2026, snap parliamentary elections. Her Liberal Democratic Party (LDP) is projected to win between 274 and 326 of the 465 seats in the lower house, marking the largest post-war electoral margin for any Japanese party. The decisive result consolidates Takaichi’s authority and positions her to pursue ambitious economic and regulatory reforms. Japan’s Sanae Takaichi Secures Landslide Win, Sets Stage for Crypto Tax Reform Markets reacted swiftly to the outcome. The dollar/yen climbed 0.2% to 157, while the BTC/JPY trading pair rose almost 5%, signaling investor confidence in Takaichi’s pro-growth agenda. USD/JPY and BTC/JPY Price Performance. Source: TradingView This so-called “Takaichi trade” draws momentum from expectations of fiscal stimulus, loose monetary policy, and increased liquidity. It has already lifted Japanese equities to record highs, while government bonds and the yen have faced pressure. Japanese Equities Performance. Source: Trading Economics US officials quickly weighed in on the result, with Treasury Secretary Scott Bessent calling the victory “historic” and emphasizing the strength of US-Japan relations under Takaichi’s leadership. My sincerest congratulations to Prime Minister @takaichi_sanae on her historic victory, securing the biggest post-war electoral margin in Japanese history.As @POTUS has said, she will not let the people of Japan down.When Japan is strong, the U.S. is strong in Asia, and the… pic.twitter.com/v7KHHflAkH— Treasury Secretary Scott Bessent (@SecScottBessent) February 8, 2026 Days before, President Donald Trump also offered a full endorsement, highlighting her leadership qualities and recent trade and security successes. In turn, Takaichi expressed gratitude, reaffirming plans to visit the White House in spring 2026 and describing the US-Japan alliance as having “unlimited potential” built...