Cryptocurrency markets have been in a bit a slump.
Bitcoin, the world’s largest cryptocurrency, fell 6% in Monday trading, its biggest daily drop since March. It has since bounced back some, and price on the digital currency currently stands at about $93,000, still about a 25% decline from an all-time high of nearly $125,000 in October.
Other prominent digital currencies, such as ether and Solana, have had recent declines as well and, like bitcoin, have now logged a negative return over the past 12 months.
For crypto investors under a dark cloud, some experts say there could be a silver lining: The Internal Revenue Service allows you to use losses on investments you sell to offset investment gains and taxable income.
The rules around this move — particularly as they pertain to crypto — can be complicated, so you’d be wise to talk with a financial advisor or tax pro before making any moves in your portfolio.
