Why Japan’s $265B stimulus package will make you hold on to your bitcoin

Bitcoin, as we all know, has benefited from macroeconomic uncertainty in 2016.

The first half of the year saw the devaluation of the Chinese yuan, which, in turn, caused the popular digital currency to surge by more than 50 percent in price. Then there’s the Brexit vote.

But as the excitement over these market drivers fade, speculations have started on whether future global events will further benefit the digital currency sector. Well, here’s something from Japan: Prime Minister Shinzo Abe announced on Wednesday that the government plans on implementing a stimulus package worth ¥28 trillion ($265 billion).

Hiroshi Miyazaki, senior economist at Mitsubishi UFJ Morgan Stanley Securities, told Jiji Press the amount is “so large” that it will be “impossible to spend this much money in one extra budget.” Most likely, the amount will be spread out over several years, and will have a significant economic impact.