Wells Fargo sees ‘YOLO’ trade driving $150B into Bitcoin and risk assets

2 hours ago

US taxation filers whitethorn spot larger refunds successful 2026 compared to erstwhile years, a improvement 1 Wall Street strategist says whitethorn boost hazard appetite for integer assets and tech stocks preferred among retail investors.

In a enactment cited by CNBC, Wells Fargo expert Ohsung Kwon said the coming refund question could assistance bring backmost the alleged “YOLO” trade, with arsenic overmuch arsenic $150 cardinal perchance flowing into equities and Bitcoin (BTC) by the extremity of March. Kwon said the other currency could beryllium astir disposable among higher-income consumers.

“Speculation picks up with bigger savings…we expect YOLO to return,” wrote Wells Fargo expert Ohsung Kwon successful a Sunday note seen by quality outlet CNBC. “Additional savings from taxation returns, particularly for the high-income user volition travel backmost into equities, successful our view,” helium added.

Kwon said immoderate of that liquidity could determination into Bitcoin and into stocks fashionable with retail traders, including Robinhood and Boeing.

Cointelegraph contacted Wells Fargo for details connected the assumptions down the $150 cardinal estimation and however overmuch of that full the slope expects could spell to integer assets, but had not received a effect by work time.

Bitcoin request depends connected sentiment

While immoderate of the payer funds whitethorn travel into Bitcoin and integer assets, it’s important to see the higher ostentation and user spending compared to the play during the Covid-19 pandemic, Nicolai Sondergaard, probe expert astatine crypto quality level Nansen, told Cointelegraph:

“If sentiment starts to travel astir and retail sees affirmative upwards momentum successful crypto assets, I spot that arsenic expanding the likelihood of funds flowing successful this direction.”

Conversely, retail investors whitethorn opt for different assets with “higher momentum and societal stickiness,” if integer plus sentiment doesn’t amended successful the adjacent term, helium said.

The larger taxation returns are owed to the transition of US President Donald Trump’s One Big Beautiful Bill, which included galore favorable provisions for 2025 taxation filings.

Trump signed the One Big Beautiful Bill Act into instrumentality connected July 4, 2025, saying it would chopped arsenic overmuch arsenic $1.6 trillion successful national spending.

Smart wealth bets connected crypto marketplace downside arsenic whales softly accumulate

Meanwhile, the whales, oregon ample investors, proceed their quiescent spot accumulation for the starring cryptocurrencies, portion the astir profitable traders by returns, tracked arsenic “smart money,” are betting connected much crypto marketplace downside.

Smart wealth traders were nett abbreviated connected Bitcoin for a cumulative $107 million, on with astir of the starring cryptocurrencies excluding Avalanche (AVAX), according to crypto quality level Nansen.

However, whales person acquired implicit $41.9 cardinal worthy of spot Ether (ETH) tokens crossed 22 wallets during the past week, marking a 1.7-fold summation successful the spot purchases of this cohort.

Magazine: Bitcoin’s ‘biggest bull catalyst’ would beryllium Saylor’s liquidation — Santiment founder

Cointelegraph is committed to independent, transparent journalism. This quality nonfiction is produced successful accordance with Cointelegraph’s Editorial Policy and aims to supply close and timely information. Readers are encouraged to verify accusation independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy

View source