According to Pentoshi, cryptocurrency traders face significant tax liabilities despite market downturns. Traders who experienced substantial gains of up to 1000% in 2024 are now confronted with a 35% tax obligation even as their portfolios have depreciated to just 20% of their peak value. This scenario, likened to the market conditions of Q1 2018, exemplifies the financial strain caused by tax liabilities that exceed current portfolio values. This cyclical pattern highlights the importance of strategic tax planning and risk management for cryptocurrency investors. [Source: Twitter/@Pentosh1]