The post Bitcoin’s slump may help holders offset gains with tax‑loss harvesting strategies appeared on BitcoinEthereumNews.com.

Bitcoin has dropped 30% from its high this year, and that drop is doing something useful for a change; giving people a shot at trimming their tax bills. It’s ugly in price, but pretty helpful if you’re sitting on stock profits. With the S&P 500 rallying by 18% year-to-date while Bitcoin is down about 5%, investors who own assets in both are now dumping their crypto losses to cancel out equity gains. Tom Geoghegan, who runs Beacon Hill Private Wealth in New Jersey, said: “Tax-loss harvesting in crypto is being treated as part of the overall tax strategy, especially in a year of strong equity market performance, rather than as a standalone tactic.” Crypto investors sell and rebuy fast without IRS limits Tax-loss harvesting works like this: sell an asset that’s gone down, claim the loss, and use it to cut your tax bill. You can wipe out capital gains dollar-for-dollar, and if the losses are bigger than the gains, you can also cut up to $3,000 from your regular income, while rolling over any leftover into next year. For stocks, the IRS wash-sale rule says you can’t buy the same stock back within 31 days or you lose the deduction. But with crypto, the IRS sees Bitcoin as property, not a security, so if you sell it and then buy it back right away, no problem. “You can sell that Bitcoin, buy it on that same day, and it doesn’t trigger that limitation,” said Robert Persichitte, a CPA and financial planner at Delagify Financial near Denver. Will Cong, a finance professor at Cornell, said timing matters this year. If someone bought Bitcoin during the autumn peak and held on, they’re now deep in the red. “A 30% decline from an autumn peak tends to create precisely that situation for…

---

Filed under: News - @ December 26, 2025 6:20 pm