The post How Tax-Loss Harvesting Shapes Bitcoin’s Year-End Price Action appeared on BitcoinEthereumNews.com.

Year-end crypto selling stems from tax optimization strategies, not panic moves. Wash sale rules don’t apply to cryptocurrencies, enabling immediate repurchases. Institutional window dressing and thin holiday liquidity amplify price declines. Bitcoin price action at year-end follows predictable patterns driven by financial incentives rather than market sentiment. Crypto Rover highlighted on X that coordinated selling pressure occurs each December as investors execute tax strategies. Understanding these mechanics explains why January often brings price rebounds. The selling activity that investors observe is not random. It results from tax incentives, institutional reporting requirements, and reduced market liquidity during holiday periods. Retail investors frequently assume this shows holiday spending needs, but the actual drivers are sophisticated financial maneuvers that recur annually. Tax-loss Harvesting Drives December Selling Pressure The primary catalyst for year-end crypto sales is tax-loss harvesting. Investors deliberately sell assets trading below their purchase price to realize capital losses. These losses offset gains from other investments, reducing total tax liability for the year. BITCOIN 2026 PUMP AHEAD. Investors often sell crypto at year-end. Why? 👇 This year has been negative for Bitcoin, leaving early-year investments at a loss. For example, selling Bitcoin bought for $1.2M at $1.0M lets an investor claim a $200K loss and repurchase in January,… pic.twitter.com/cP9WRSbgn9 — Crypto Rover (@cryptorover) December 25, 2025 Cryptocurrency enjoys a major regulatory advantage compared to traditional securities. In the U.S. stock market, the IRS wash sale rule prevents investors from claiming tax deductions if they repurchase the same security within 30 days of selling it at a loss. As of late 2025, this rule still does not explicitly apply to cryptocurrencies in the United States. This creates an opportunity for crypto investors to execute aggressive tax strategies. They can sell losing positions today to secure tax deductions, then repurchase the same assets to…

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Filed under: News - @ December 25, 2025 5:15 pm