Bitcoin's 30% Drop From Record High Opens Tax-Loss Harvesting Window

Bitcoin has fallen about 30% from its all-time high, creating a rare opportunity for tax-loss harvesting this year, Bloomberg reports. Financial advisors said digital asset tax-loss harvesting activity could be notably higher in 2024, as Bitcoin remains down roughly 5% year-to-date while the S&P 500 Index has gained about 18% over the same period. The divergence is prompting investors holding both stocks and crypto to sell losing Bitcoin positions before year-end to offset capital gains from equities, particularly those who bought near the October highs.