This wave of Bitcoin adjustments at the end of the year has long been exposed—the tax arbitrage game of top-tier institutions.

The strategy is actually not complicated: in December, sell off your BTC holdings, lock in the losses on the books, and use these losses to offset the huge profits of the year, thereby reducing tax burdens. For example, selling coins bought at a cost of 1.2 million at a price of 1 million results in a paper loss of 200,000, which becomes a tax-saving tool. After selling? They will buy back these chips in January and continue holding.

Why is this so predictable? Looking at the trends over the past few years, starting from 2023, there has always been a violent rebound at the beginning of each year, and it’s never a coincidence. Those tax arbitrageurs finish clearing their positions in December, and at the start of the new year in January, they begin to buy back aggressively, naturally pushing the coin prices higher. The current decline, frankly, is just a "smokescreen" for big players to pay less tax.

From another perspective, this is actually a good opportunity to get in. When those people start buying back wildly in January, liquidity will be drained, and it will be hard to enter at that point. Instead of regretting selling right before the rebound, it’s better to seize this window now. The 2026 market is just beginning to brew, don’t be scared out by this cyclical shakeout.