Investors are increasingly engaging in tax-loss harvesting within the cryptocurrency market as the 2025 tax filing season approaches. This strategy involves selling underperforming crypto assets to offset capital gains, taking advantage of the absence of wash-sale rules that allow immediate repurchase of the same assets. The introduction of the IRS 1099-DA form has made tracking cost bases more crucial for traders. As they navigate the downturn, investors are also keeping an eye on altcoins for potential rebounds, aiming to optimize their tax positions and future gains.