Bloomberg: Bitcoin Pulls Back 30%, Creating a Rare "Tax-Loss Harvesting" Opportunity

BlockBeats News, December 26, according to Bloomberg, bitcoin has fallen about 30% from its all-time high, creating an unusual tax planning opportunity. Several financial advisors have stated that tax-loss harvesting of digital assets may be significantly more common this year than in previous years.

So far this year, bitcoin is still down about 5%, while the S&P 500 index has risen about 18% over the same period. This significant divergence gives investors who hold both stocks and crypto assets a strong incentive:

To sell bitcoin positions with unrealized losses before the end of the year to offset capital gains from stock investments, especially for those who bought bitcoin at its high in October.