Japan’s PM Takaichi faces sliding approval ratings, and crypto markets should pay attention

Japan’s first female Prime Minister is hitting a rough patch. Sanae Takaichi, who rode a wave of pro-growth enthusiasm into office in October 2025, has watched her cabinet’s approval rating sink below 50% for the first time since her inauguration. Market strategists are now flagging what comes next: a likely pivot toward even looser spending policies that could send shockwaves through currency markets and risk assets. From supermajority to sub-50 After taking office in October 2025, Takaichi called a snap election on February 8, 2026, and delivered the Liberal Democratic Party a historic supermajority. Her approval ratings climbed into the upper 60s, hitting 68% in June 2026 according to a Nikkei/TV Tokyo poll. A Jiji Press poll dated July 16, 2026 showed her cabinet’s approval at 49%, the first time it dipped below the critical 50% threshold. The decline was especially pronounced among older voters, who grew increasingly uneasy about persistent inflation pressures and what they viewed as divisive legislative proposals. The fiscal pivot and what it means for markets For the yen, looser fiscal policy is potentially bad news. A softer yen has cascading effects across global markets. ...