TechFlow News, February 18: According to CNBC, Wells Fargo stated that some taxpayers this year may receive larger tax refunds than in previous years—a development that could drive capital inflows into risk assets such as stocks and Bitcoin. This is due to provisions in the “Beautiful Big Act,” passed last summer, which benefit 2025 tax filers. Additionally, the U.S. Internal Revenue Service (IRS) did not update its withholding tax tables last year; thus, wage earners are less likely to face unexpected adjustments stemming from previously withheld taxes.
In its latest analyst report, Wells Fargo noted these factors could result in up to $150 billion flowing into markets by the end of March, coinciding with the disbursement of over 60% of tax refunds. The bank’s analysts added that the anticipated liquidity injection may boost Bitcoin as well as stocks favored by retail investors—including Boeing and Robinhood.
Analysts pointed out that Bitcoin serves as a proxy indicator for liquidity, signaling shifts in investment patterns. According to Wells Fargo data, domestic liquidity declined by $105 billion over the past four weeks, while Bitcoin retreated approximately 29% over the past month.
