According to BlockBeats, on December 26, Bitcoin retreated approximately 30% from its all-time high, providing an opportunity for tax harvesting. Several financial advisors have stated that this year, digital asset tax-loss harvesting activities may be significantly more than in previous years.

As of now, Bitcoin has declined about 5% year-to-date, while the S&P 500 index has risen approximately 18% during the same period. This notable divergence has prompted investors to sell floating-loss Bitcoin positions before the end of the year to offset capital gains from stock investments.
BlockBeats Note: Tax-loss harvesting refers to investors selling assets at a loss to realize the loss and offset gains from other assets, thereby reducing capital gains tax payable. This strategy has regained attention amid stock market gains and crypto asset corrections.