A major event has erupted in Japan's political arena, as Prime Minister Shigeru Ishiba announced his resignation, citing the need to prevent internal division. This news has not only caused a stir in the political world but may also have far-reaching effects on the Crypto Assets market.

As an important hub for compliant Crypto Assets trading in Asia, Japan's political turmoil may trigger a series of chain reactions. Government changes are often accompanied by policy uncertainties, which could impact market sentiment in the short term, especially for trading pairs related to the yen and domestic compliant projects in Japan.

From multiple perspectives, the impact of this event on the Crypto Assets market may be reflected in the following aspects:

First, it may trigger short-term market fluctuations. Japanese investors have always been important participants in the Crypto Assets market, and the resignation of the Prime Minister may lead local investors to adopt a wait-and-see attitude, thereby affecting market trading activity. Trading pairs such as Bitcoin against the Japanese Yen (BTC/JPY) may experience significant volatility.

Secondly, there is uncertainty regarding policy continuity. If the new Prime Minister adopts stricter encryption regulation measures, such as raising tax rates or strengthening exchange controls, it may put pressure on the market in the short term. However, in the long run, this could accelerate the compliance process in the industry, similar to the exchange licensing system previously introduced by the Financial Services Agency (FSA) in Japan, which helps to purify the market.

Finally, it may trigger a demand for safe-haven assets. If the political situation remains turbulent and leads to a depreciation of the yen, some investors may choose to transfer their funds to Bitcoin and other Crypto Assets to hedge against risks. This situation occurred in 2022 when Abe resigned, during which Bitcoin experienced an upward trend against the market.

The future market direction will depend on multiple factors, including Shiba Inu's specific statements at the press conference, as well as whether BTC/JPY can maintain key support levels. The impact of this event on altcoins and the decentralized finance (DeFi) sector remains to be further observed. During this uncertain period, investors need to stay vigilant and closely monitor developments.