Blockchain
Crypto, Property & Tax Strategy in 2026: Key Insights from The On Chain Podcast Ep. 1
10 Mar 20265min
Episode 1 | The On Chain Podcast | Hosted by Oliver Woodbridge, Tax On Chain & Mortgage On Chain
Crypto market volatility, rising interest rates and a rapidly evolving lending landscape are forcing Australian investors to rethink how they structure their portfolios. In the debut episode of The On Chain Podcast, Tax On Chain co-founders Oliver Woodbridge and Rafael Franco sit down with James Coombes, Chief Commercial Officer of Block Earner - Australia's largest crypto-backed lender - and Royce Yallouz, Partner & Principal Broker at Mortgage On Chain, to unpack what sophisticated investors are actually doing right now across crypto, property and tax.
Whether you're a crypto investor navigating the current market, exploring property finance, or interested in tax strategies, this episode has something for you.
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What's Driving the 2026 Crypto Market Sell-Off?
The crypto market has experienced significant selling pressure in early 2026, even as traditional asset classes like gold and equities remain near record highs. This decoupling from the stock market is unusual - and according to James Coombes, it might actually be a positive sign.
"Throughout the last couple of years, I was growing increasingly concerned that Bitcoin is just another tech stock. It is fundamentally different, the value it brings to the world is different in my eyes. So I was starting to believe that shouldn't be the case. Seeing this decorrelation is encouraging me - it's making me feel like perhaps investors are treating it as a unique asset."
⏱ 6:40 - James Coombes, Block Earner
Key factors behind the sell-off include:
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Liquidity rotation into gold and silver: Rafael Franco noted that some of his most sophisticated clients managing hundreds of millions in assets began pivoting to gold and silver 2–3 months before the broader sell-off, draining liquidity from crypto markets.
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Leverage-driven cascading liquidations: A high percentage of crypto trading is done with borrowed money. Small price dips trigger forced liquidations, creating the 'red waterfall' of rapid price drops seen in intraday charts.
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Institutional liquidations: Rumours of large institutional players being forced to sell - even while borrowing against their assets - contributed to the volatility. Bitcoin's relatively small market cap: At approximately $1.3 trillion, Bitcoin's entire market cap can be moved significantly by a single day's gold market movement (gold sits at ~$55 trillion).
"When gold moves 10% in a day - like we did last week - that's deleting five or ten times the entire market cap of Bitcoin in a single day. And then we say, oh, when Bitcoin moves 10% that's earthshattering. There is a natural misunderstanding between market caps and investable assets. Bitcoin has a lot of volatility in the future if it is going to get the market cap of gold "
⏱ 7:42 - James Coombes, Block Earner
Why This Crypto Cycle Has Played Out Differently
Long-time crypto investors will notice that the typical 'Bitcoin runs, altcoins follow' pattern hasn't played out in this cycle. The expected rotation from Bitcoin gains into Ethereum, Solana and other assets largely failed to materialise - at least in the traditional sense.
Three structural shifts explain this:
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The Bitcoin ETF effect: When investors buy Bitcoin through an ETF via traditional investment platforms, their wealth stays off-chain - and so does their mindset. A retirement-focused ETF investor watching Bitcoin run isn't going to liquidate and chase gains in Solana or Cardano. They can't easily access altcoins through the TradFi investment platforms they're using, and frankly, they're not thinking that way. They're thinking about portfolio allocation and capital preservation. The investor profile has fundamentally changed, and the old rotation playbook no longer applies.
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Attention fragmentation: The memecoin explosion on Solana absorbed all the speculative energy that ETH and other tokens captured in previous cycles. Solana's fast and cheap infrastructure made it the home of meme culture and the attention followed.
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A maturing (but still young) investor base: Seasoned crypto investors have become more cautious about altcoin rotation after seeing assets fall 90%+ against Bitcoin in previous cycles. The 'just hold Bitcoin' narrative is stronger than ever.
"This changing investor class, either be it through ETFs, or just broadening the investor base of Bitcoin, is changing the fundamentals we expect from the market."
⏱ 24:40 - James Coombes, Block Earner
Real-Time Investor Behaviour: What Block Earner's Data Shows
As Australia's largest crypto-backed lender and a crypto trading platform, Block Earner has a unique window into how investors are actually behaving - not just what they say they'll do.
What Block Earner is seeing right now:
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Trading volumes are down: New-to-crypto investors are less active than 12 months ago. This is consistent across the industry.
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Long-term holders are accumulating: Block Earner's most loyal, highest-volume customers have started buying again - behaving exactly as you'd expect from experienced cycle investors.
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Borrowing optimism is returning: With prices down and volatility stabilising, borrowers are recognising that lending against Bitcoin at current prices carries less risk than borrowing during price discovery.
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No forced liquidations: Block Earner's 30-day minimum notice policy meant no customer was compulsorily closed out during the sell-off. Many used this window to buy more Bitcoin and top up their loan collateral.
"People are coming to us to say: my Bitcoin's down where it was two months ago. I don't want to sell it in this position, so why don't I release some cash?"
⏱ 31:45 - James Coombes, Block Earner
Tax Strategy for Crypto Investors During a Market Downturn
When markets are flat or falling, many investors switch off and walk away from their portfolios. Rafael Franco's message is the opposite: downturns are actually the best time to reassess your tax structure.
1. Crystallise Capital Losses Strategically
If you're holding tokens that have dropped significantly - particularly meme coins or speculative plays unlikely to recover - now is the time to sell and crystallise those losses. A capital loss can be carried forward to offset future CGT when the market recovers.
2. Restructure Into a Tax-Effective Vehicle
If you've been investing in your personal name and have been thinking about moving to a trust or company structure, a downturn is the ideal window. Transferring assets between entities is a taxable event - but if you're currently sitting in losses or at a minimal gain, the CGT impact is much lower. Setting up a trust or company now means you're positioned correctly for the next bull run.
"Now is probably a good time to think about: let's set up that trust that I've always wanted to set up. Doing so now is actually just going to trigger a capital loss - but I'm now positioned well from a tax perspective for the next leg up."
⏱ 39:26 - Rafael Franco, Tax On Chain
3. Consider Setting Up a Crypto SMSF
Investors who had been considering a Self-Managed Super Fund (SMSF) for crypto exposure are now acting on it. With Bitcoin at significantly lower prices than its recent highs, this is a compelling entry point for a long-term SMSF strategy. The SMSF structure offers significant tax advantages: a concessional 15% tax rate on earnings and potentially 0% CGT if assets are sold in pension phase.
Crypto-Backed Loans: How to Buy Property Without Selling Bitcoin
One of the most significant product innovations discussed in this episode is Block Earner's Bitcoin-backed home loan - a solution that lets Australian crypto investors buy property without liquidating their Bitcoin. Products like this solves a dilemma often faced by crypto investors that Oliver Woodbridge captures well:
"For a lot of crypto investors, one of the hardest parts about buying a property isn’t necessarily funding the deposit or servicing the loan, it's actually the opportunity cost of doing so. Selling Bitcoin is hard when you believe there is significant upside ahead.
A mistake a lot of investors make is assuming that it’s a binary choice - that it has to be one or the other [Crypto or property]. But if it doesn't have to be binary, let’s unpack that and see what options are available."
⏱ 45:43 - Oliver Woodbridge, Tax On Chain
How it works:
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You bring your Bitcoin to Block Earner as security.
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Block Earner lends you the money needed for your deposit (without you selling your Bitcoin).
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You're paired with a specialist mortgage broker, like Mortgage On Chain, who understands your crypto income profile.
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You hold two loan facilities: a Bitcoin-backed personal loan with Block Earner and a traditional mortgage with a bank.
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If your Bitcoin drops to zero, Block Earner has no recourse against your home - security is over the Bitcoin only.
"We have over $600 million of mortgages on the waitlist - of people coming to the Block Earner website and saying I want to buy a home using my Bitcoin."
⏱ 50:51 - James Coombes, Block Earner
The tax advantage:
Not all crypto-backed loans are created equal from a tax perspective - and this is where Rafael Franco's expertise adds serious nuance.
"With CeFi products, that loan agreement can be structured in a way that it doesn't constitute a taxable event. When it comes to tax planning and it comes to making a decision to sell your crypto to fund a house deposit, we now have the option to take a bitcoin-backed loan tax free."
⏱ 52:15 - Rafael Franco, Tax On Chain
In practical terms: borrowing against your Bitcoin through a CeFi lender like Block Earner can let you access liquidity without triggering CGT while also allowing you to maintain your crypto exposure while funding a property deposit.
Debt Recycling: The Strategy Most Crypto Homeowners Are Missing
One of the most powerful and under-utilised tax strategies for crypto investors who own property is debt recycling. Rafael walked through a real client case study:
The scenario:
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Client has a $1,000,000 home loan (non-deductible interest as its his primary residence).
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Client holds $300,000 in staked ETH generating staking rewards.
-Sell the ETH → repay $300,000 of the mortgage → immediately reborrow $300,000 to repurchase the same ETH.
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Loan balance stays at $1,000,000 but $300,000 of it is now an investment loan.
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Interest on that $300,000 is now tax-deductible (used to purchase an income-producing asset).
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At 6% interest, that's $18,000/year in new tax deductions that weren't there before.
"We still got the same exposure to crypto - $300k in crypto. We're still left with the same loan balance of a million. But in this case, the way the funds were recycled through the home loan, 300 grand of that loan is now deductible."
⏱ 1:02:00 - Rafael Franco, Tax On Chain
What Separates Successful Investors from Those Who Struggle
Across all three businesses, the panel identified consistent behaviours that separate long-term wealth builders from those who get caught out.
What successful investors do:
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Dollar-cost average (DCA) consistently - both averaging in on the way down, and averaging out on the way up.
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Maintain dry powder. In crypto, having a cash on the sidelines allows you to capitalise on downwards volatility and when it comes to borrowing, a buffer gives you the ability to act and absorb shocks without forced selling.
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Tax structures. Ask tax questions before gains accumulate - not after.
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Understand what you’re investing in. Apply the same diligence to crypto as you would to a property purchase - you wouldn’t buy a house without doing some due diligence - the same applies to other investments.
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Don't let price movements change conviction. If nothing has changed about the underlying asset, a price drop isn't a reason to sell. This ties into understanding what it is you’re investing in.
*"I've always invested in Bitcoin for what it means and not what it costs. That’s why I bought it for $120k and that's why I will buy it today." *
⏱ 1:23:07 - James Coombes, Block Earner
"That conviction will allow you to hold it through volatility."
⏱ 1:23:07 - Oliver Woodbridge, Tax On Chain
What struggling investors do:
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Use leverage in sideways markets - the fastest way to get liquidated with no momentum to trade.
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Buy high, panic sell low - over-investing conviction at peak prices then exiting at the bottom.
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Neglect tax structure until it's too late - once large unrealised gains build up, restructuring becomes expensive.
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Over-leverage in property - not building enough of an equity buffer or accounting for rate changes.
Subscribe to The On Chain Podcast
The On Chain Podcast brings together the sharpest minds across crypto, property and tax to help Australian investors make smarter, more structured decisions.
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Connect with the experts featured in this episode:
Tax On Chain - crypto tax accounting for individuals, businesses and SMSFs.
Mortgage On Chain - specialist mortgage broking for crypto investors.
Block Earner - Australia's largest crypto-backed lender and Bitcoin home loan provider
Disclaimer: The information contained in this blog is general in nature and is provided for informational purposes only. It does not constitute financial, legal, or tax advice, and should not be relied upon as such. Block Earner does not guarantee the accuracy or completeness of any information presented. You should consider your own personal circumstances and seek professional advice before making any financial or investment decisions. Past performance is not indicative of future results. All investments carry risk.
