Wells Fargo Says U.S.-Driven Bitcoin YOLO Investing Set to Return

▲ Bitcoin (BTC)

Analysis suggests that large-scale tax refunds from the U.S. government could flow into the virtual asset market, allowing Bitcoin to benefit from an unprecedented surge in liquidity.

According to cryptocurrency-focused outlet U.Today on Feb. 18 (local time), Ohsung Kwon, a strategist at global financial institution Wells Fargo, said the substantial tax refunds Americans are set to receive this year could revive so-called YOLO trades, channeling funds into Bitcoin (BTC) and other risk assets. Kwon projected that up to $150 billion could newly flow into stock and Bitcoin markets by the end of March. The increase in refunds stems from the expanded refund scale under the “One Big Beautiful Bill” signed by U.S. President Donald Trump.

Market experts believe this influx of capital could rekindle speculative sentiment in asset markets, particularly among high-income consumers. In a report, Kwon noted that as additional savings and tax refunds return to the market, popular retail investor picks such as Robinhood and Boeing are likely to emerge as key beneficiaries. The large-scale liquidity injection is expected to stimulate overall buying pressure in the digital asset market and amplify price volatility in major assets including Bitcoin and XRP.

Nicolai Sondergaard, a research analyst at on-chain data analytics firm Nansen, said that if upward momentum in the digital asset market is confirmed, the likelihood of refund-driven inflows would increase further. However, persistently high inflation and consumer spending may act as variables, and investors could shift their attention to other risk assets with stronger social cohesion instead of cryptocurrencies. Ultimately, demand for Bitcoin appears to depend on whether overall market sentiment recovers.

Meanwhile, so-called smart money traders remain cautious, continuing to bet on further downside. According to Nansen data, they maintain a net short position of approximately $107 million in Bitcoin. In contrast, large whale investors accumulated about $41.9 million worth of Ethereum (ETH) spot holdings through 22 wallets over the past week, seeking opportunities to buy at lower levels. As the divergence in outlook between institutional and retail investors widens, the market’s direction is becoming increasingly uncertain.

With policy support from the Trump administration and expectations of massive liquidity inflows converging, the digital asset market is approaching a critical turning point. If the $150 billion projected by Wells Fargo hits the market, it could strengthen Bitcoin’s dominance and drive a broader rally in altcoins. Global financial markets are closely watching whether the anticipated influx of large-scale capital will materialize strongly enough to outweigh internal ecosystem concerns, including technical controversies surrounding the XRP Ledger.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on it. The information should be interpreted for informational purposes only.