Hoi Li’s Crypto Alert: Bitcoin Plummets Below Trump-Era Levels – Time to Audit Your Losses?
The "Red Sea" is here, and it's not the one in the Middle East. Bitcoin has plummeted to its lowest level since 2024, driving a massive $2 trillion tumble in total crypto market value. Whether it's "heavy losses" or a "market reset," the street is in panic. But as a "CPA in-law," I see a tactical move: Tax Loss Harvesting.
If your portfolio is down 40%, you aren't just "holding the bag"—you're holding a Tax Shield. Here is the audit.
1. Liquidation vs. Harvesting
Panic selling is an emotional loss. Loss Harvesting is a professional one. In Nigeria, under the 2026 Finance Act, capital losses on digital assets can be used to offset capital gains in other areas (like stocks or property). If you sell your "underwater" BTC today, you lock in a loss that can legally reduce the tax you owe on your other profitable investments. It's about turning a bad trade into a good tax return.
2. The 2026 Crypto Caught
Remember, the NRS is now digital-first. Every P2P transaction and exchange withdrawal is tracked. If you take a loss, document it now. When the market inevitably "pumps" again, you'll need those recorded losses from February 2026 to protect your future gains from a massive capital gains bill. Don't hide from the red candles; audit them.
3. Strategic Re-Entry
For the "Japa" crowd using crypto for remittances: the crash means the Naira-to-BTC rate is volatile. Audit your transfer timing. If you're moving large sums, the "tumble" could either be a discount or a trap. Use our Exchange Tracker to match the market dip with the best FX rates.
Hoi Li's Crypto Tip:
The market is volatile, but the tax code is fixed. Use the volatility to your advantage. A "loss" on paper today is a "win" on your tax bill tomorrow. Stay liquid, stay compliant!