Bitcoin Drops 32 Percent From All-Time High as One-Year Tax Period Ends

Bitcoin is currently trading at $85,662, which represents a 32.1 percent drop from its all-time high of $126,080 reached exactly one year ago on October 6, 2025. The gap is slightly smaller when measured in euros, standing at 29.0 percent, due to the euro's depreciation against the dollar during this period.

Over the past 24 hours, Bitcoin has seen a modest gain of 0.63 percent in dollar terms and 1.19 percent in euros. The cryptocurrency's market capitalisation is now $1.72 trillion, with a trading turnover of $30.3 billion over the past day. Despite the decline from its peak, Bitcoin has shown signs of recovery, gaining 3.4 percent over the past week and 8.4 percent over the past month.

For investors in Germany, the one-year tax period for those who bought Bitcoin around October 6, 2025, is coming to an end. This means that any gains or losses from sales made after this period will not be subject to tax, but losses will also not be eligible for tax offsets. The German tax office calculates gains and losses in euros, regardless of the currency in which the trade was settled.

The article emphasizes the importance of understanding the tax implications of cryptocurrency investments, particularly the difference between paper losses and realized losses. It also highlights the significance of the one-year holding period under German tax law, which can impact the tax treatment of crypto gains and losses.