Bybit x FXStreet TradFi Report: Japan's Historic Leadership Shift Sparks Nikkei Rally and Yen Weakness

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10 Oct, 2025, 08:39 GMT

DUBAI, UAE , Oct. 10, 2025 /PRNewswire/ -- Bybit, the world's second-largest cryptocurrency exchange by trading volume, has released a new Bybit x FXStreet TradFi Report, analyzing Japan's unprecedented political transition and its sweeping effects on global markets.

The report spotlights the election of Sanae Takaichi, who is likely to become Japan's first female prime minister, a milestone that has reshaped investor sentiment and jolted currency and equity markets.

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Following her victory in the Liberal Democratic Party's leadership race, the yen plunged to historic lows against the euro and broke past 150 versus the U.S. dollar, while the Nikkei 225 rose 4.8 percent to a new all-time high, approaching the 48,000 mark.

Analysts note that Takaichi's pro-growth, stimulus-friendly platform has altered expectations for the Bank of Japan's monetary policy. Betting markets, which had placed a 60 percent chance on an October hike, quickly revised their expectations downward to 24 percent. Markets are now pricing in a likely hike to 0.75 percent in December. This adjustment has reinforced yen weakness and bolstered equity momentum.

Key highlights:

Political milestone: Sanae Takaichi becomes Japan's first female prime minister.
Currency markets: Yen hits record lows against the euro; USD/JPY breaks the 150 threshold.
Policy shift: Expectations for a Bank of Japan rate hike postponed to December.
Equities rally: Nikkei 225 could surge toward 50,000, with the index already approaching 48,000 on stimulus hopes and continued low interest rates.
Near-term catalysts: October's parliamentary confirmation vote and the BOJ's policy meeting loom large.

The report underscores the heightened volatility in traditional finance and crypto markets as traders recalibrate strategies around Japan's evolving economic outlook. With the yen under pressure and equities buoyed by stimulus hopes, Japan has returned to the center of global macro discussions.

The full Bybit x FXStreet TradFi Report is available now on Bybit's official platform, offering traders in-depth analysis, technical insights, and forward-looking market perspectives. Bybit's MetaTrader 5 (MT5) platform is also noted in the report as a venue for navigating FX market movements during this period of volatility.

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About Bybit

Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving a global community of over 70 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.

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