Deductions & credits
You stated: "It is counting it as a loss on TurboTax".
Transferring from one wallet to another is addressed by @ColeenD3 here:
Not every transfer of funds is considered a sale. For the user, sending bitcoins from a one wallet to another wallet, for example, is only a transfer and not a sale since the user is still in possession of the coins.
Your entry that was downloaded into TurboTax at Federal / Wages & Income / Your income / Investments and Savings / Stocks, Cryptocurrency, Mutual Funds, Bonds, Other may need to be removed or adjusted. The correction may be done here.
