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Japan Approves $135B Stimulus Package; BTC Dip Keeps Giving

2025/11/21 12:37
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Japan Approves $135B Stimulus Package; BTC Dip Keeps Giving

The package aims to ease the burden of inflation on households and businesses, according to media report

By Omkar Godbole
Nov 21, 2025, 4:37 a.m.
FastNews (CoinDesk)

What to know:

  • BTC extends sell-off, dipping below $85,500.
  • Sanae Takaichi's cabinet approved a multi-billion dollar fiscal bazooka to ease inflation pain.

Japanese Prime Minister Sanae Takaichi’s cabinet approved a multi-billion dollar stimulus package on Friday, delivering on the new leader’s promise to pursue an expansionary fiscal policy.

The stimulus, worth JPY 21.3 trillion ($135.40 billion), includes general account outlays of JPY 17.7 trillion, significantly larger than last year’s JPY 13.9 trillion, representing the biggest fiscal bazooka since the COVID pandemic. The package also includes JPY 2.7 trillion in tax cuts.

STORY CONTINUES BELOW
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The package aims to ease the burden of inflation on households and businesses, according to media reports—an approach that might contradict traditional economic views that stimulus tends to be inflationary.

Yet bitcoin BTC$85,389.03, widely seen as a hedge against inflation and monetary and fiscal imprudence, fell 0.8% to $85,480, extending a recent sell-off that saw prices drop from a record high of $126,000 reached on Oct. 8.

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BTC Falls Toward Mid-$80Ks as Market Structure Weakens Into Year-End

FlowDesk flags sustained sell pressure from old wallets, QCP notes a sudden hawkish Fed repricing, and Deribit data shows downside positioning now dominating.

What to know:

  • Bitcoin's price fell below $85,500, marking a 7% drop in 24 hours and a 20% decline over the past month.
  • The market is under pressure from a heavy supply of coins moving from long-dormant wallets to exchanges.
  • Derivatives and options data show traders are positioning for further downside, with puts gaining prominence over calls.
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