PEPE surged 20% today, which may be related to the U.S. tax loss harvesting mechanism.

The U.S. tax system has a logic — if you profit $10,000 from a stock or cryptocurrency in 2025, depending on your holding period and income level, you will need to pay 15% to 37% income tax. What does this mean? It means that around the end of each year, investors face a critical time window.

Some institutions and large investors strategically adjust their holdings during this period, locking in losses to offset gains within the year (so-called tax loss harvesting), while also creating rebound opportunities in certain assets. High-volatility assets like PEPE tend to become focal points for capital activity under this market rhythm.

Simply put, although tax policies may seem far from the crypto world, they actually influence market participants' behavior at specific times, thereby affecting price trends. That’s why paying attention to the macro tax calendar is not an unnecessary task for cryptocurrency traders.