Recently, Bitcoin's price movement has left many people confused. Since reaching a historic high of around $126,000 in October last year, it has already fallen by nearly 30%, oscillating between $88,000 and $89,000. It looks painful, but for savvy investors, this is a rare opportunity—the year-end tax-loss harvesting season is here.

Several experienced financial advisors have mentioned that this year, tax-loss harvesting activities in the digital asset space are expected to increase significantly, especially during this window close to the year-end tax deadline. Sounds unfamiliar? The logic is actually quite simple.

Tax-loss harvesting involves investors deliberately selling assets that are already at a loss, realizing the loss as a capital loss. What’s next? Using this loss to offset gains from other investments (like stocks), ultimately reducing the amount of tax owed. Taking the US tax system as an example, this is a legal and common tax-saving strategy with a broad scope of application.

Now that Bitcoin has fallen to this level, investors holding unrealized losses can consider this move. Confirm the losses, reserve space for next year's profits, or directly reduce this year's tax burden. Especially for traders with substantial annual gains, this strategy becomes even more attractive.

Of course, this isn’t an encouragement to sell recklessly. The key point is—if you were already planning to rebalance your portfolio, instead of waiting, it’s better to execute this strategically at this point, killing two birds with one stone.