Wells Fargo: "$150bn in tax refunds set to flow into the US…fuel for Bitcoin rally"

JOON HYOUNG LEE

Summary

Wells Fargo said it expects $150bn in tax refunds to flow into US markets by the end of next month.
Wells Fargo analyzed that higher-income taxpayers may reinvest refunds into equities, improving market sentiment and potentially acting as a catalyst for gains in risk assets such as Bitcoin.
Wu Blockchain reported that Wells Fargo expects the YOLO trade to reappear ahead of the US tax refund season, with bold betting on high-risk assets set to resume.

An analysis suggests that a large wave of US tax refunds could provide upside momentum for risk assets such as Bitcoin (BTC).

According to CNBC on the 17th (local time), Wall Street investment bank (IB) Wells Fargo said in a recent report it expects $150bn in tax refunds to flow into US markets by the end of next month.

Wells Fargo said higher-income taxpayers could reinvest their refunds into equities and other assets, improving market sentiment. The bank also argued that these funds could move into risk assets such as Bitcoin, acting as a catalyst for a broader market rise.

Wu Blockchain reported that Wells Fargo expects the so-called 'YOLO (You Only Live Once)' trade to re-emerge as the US tax refund season approaches. The YOLO trade refers to an investment approach rooted in the mindset that 'you only live once,' involving bold bets on high-risk assets.

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