Pepe suddenly jumped 20% today, likely due to the U.S. tax 'loophole' at play. Specifically, this is related to the U.S. Tax-Loss Harvesting rule. 1/ What’s this rule? Here’s an example: If you make $10,000 in profit from a stock in 2025, depending on your holding period and income, you’ll need to pay 15%-37% in taxes. But if you have an unrealized loss of $10,000 on Pepe and sell it within 2025, that loss can offset your previous gains, reducing your taxable amount to zero. That’s saving you thousands of dollars directly. Coincidentally, 2025 is expected to be a bull market for U.S. stocks, while crypto assets are in a bear market. The two can offset each other, creating a form of 'system arbitrage.' 2/ Selling Buying So, at the end of 2025, many Americans who are stuck in losing positions choose to sell at the last moment, turning 'unrealized losses' into 'realized losses' to offset their gains. When 2026 starts, those who are bullish on Pepe rush to buy it back immediately. Here’s some data: According to Pepe project team Z, over the past three months, retail investors on the U.S. platform Robinhood have added 6.553 trillion Pepe tokens (total supply is 35.006 trillion), accounting for 8.32% of the total supply. This shows U.S. retail investors have been consistently buying Pepe. 3/ Does this strategy work for stocks? Nope. Stocks are subject to the Wash Sale Rule, which prohibits claiming tax deductions on losses if you buy back the same stock within 30 days of selling it. However, the U.S. IRS currently treats cryptocurrencies as 'property' rather than 'securities,' so crypto is not subject to the Wash Sale Rule for now. This creates a unique and legitimate tax-saving mechanism. Conclusion: Today’s pump is likely the return of 'tax-saving funds,' along with year-end liquidity replenishment from exchanges and market makers.