Year-end "Tax Office" fee push triggers Bitcoin price adjustment, sparking a wave of investor sell-offs

NftBankruptcyClub · 2026-01-12T14:32:15+00:00

Bitcoin prices have fallen more than 30% from their all-time highs, providing investors with tax planning opportunities. Forecasts indicate that this year's digital asset tax-loss harvesting will reach a peak, with many investors considering liquidating unrealized losses in Bitcoin before the end of the year to offset capital gains taxes. This strategy is significant amid market structure adjustments, with intensive activity expected in December.

NftBankruptcyClub

2026-01-12 14:32:15

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BlockBeats News, according to Bloomberg, Bitcoin has retraced over 30% from its all-time high, opening a rare tax planning opportunity for investors. Several investment advisory firms predict that this year’s digital asset position’s tax-loss harvesting operations will reach a peak not seen in previous years.

Currently, BTC is trading around $90.31K, significantly below its historical high of $126.08K. Data shows that Bitcoin’s annual performance has declined by 4.50%, in stark contrast to the S&P 500 index’s rally— which has gained approximately 18% year-to-date.

This divergence has had a special effect on portfolios that allocate both traditional stocks and cryptocurrencies. Many investors are facing a strategic choice: to liquidate Bitcoin positions with unrealized losses before year-end to offset capital gains taxes from stock investments. Especially those who entered BTC during the high-price range in October have a particularly strong motivation to sell now—this operation is exactly what professional advisors refer to as a “tax-loss harvesting” strategy.

The opening of the year-end tax planning window presents a rare opportunity for asset allocators to control costs, while also driving demand for structural adjustments, associated expenses, and related tax treatments. Market observers note that this wave of operations may intensify in December.

BTC3,25%

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