Bloomberg: Bitcoin Pullback of 30% Spurs 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 opportunity. Several financial advisors have indicated that tax-loss harvesting for digital assets this year may be significantly higher than in previous years.

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

To sell their losing Bitcoin positions 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.