Bloomberg: Bitcoin Pulls Back 30%, Fuels Rare 'Tax Loss Harvesting' Window

BlockBeats News, December 26th, according to Bloomberg, Bitcoin has retraced about 30% from its all-time high, creating an unusual tax operation opportunity. Several financial advisors have indicated that this year's digital asset tax-loss harvesting behavior may be significantly more prevalent than in previous years.

As of now, Bitcoin is still down about 5% for the year, while the S&P 500 Index has risen approximately 18% during the same period. This significant divergence has motivated investors holding both stocks and crypto assets:

To sell their Bitcoin positions at a loss before the end of the year to offset capital gains from stock investments, especially for those investors who bought Bitcoin at the peak in October.

BlockBeats Note: Tax-loss harvesting refers to investors selling assets at a loss to realize the loss and offset gains in other assets, thereby reducing the capital gains tax owed. With the backdrop of a rising stock market and a crypto asset pullback, this strategy is once again receiving market attention.