Derived from Coinotag, crypto investors are leveraging Bitcoin's 30% decline from its 2025 high to offset capital gains from the S&P 500's 18% year-to-date rise through tax-loss harvesting. Unlike stocks, crypto is not subject to the IRS wash-sale rule, allowing immediate repurchase after selling at a loss. This strategy enables dollar-for-dollar deductions against gains and up to $3,000 in ordinary income annually. Experts note the tactic is gaining traction in late 2025 as a key part of tax planning, with no 30-day waiting period for rebuying. Act before year-end to optimize deductions ahead of 1099-DA reporting in 2026.
Bitcoin's 30% Drop in 2025 Enables Tax-Loss Harvesting Amid S&P 500 Gains
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Summary
Bitcoin news: A 30% drop in Bitcoin from its 2025 high is fueling tax-loss harvesting as investors offset S&P 500 gains. With no IRS wash-sale rule, traders can rebuy immediately, deducting up to $3,000 in income. Altcoins to watch may also benefit from similar strategies. Activity is rising in late 2025 ahead of 1099-DA reports in 2026.
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