Ugh, I was afraid of this happening. Does this mean that if you day trade for a week and the money flows through lets say 10 cryptos, that somehow each one of those would be taxed at the short term rate? Wouldn't that equal 100 percent? I understand that the government is crazy unfair, but I don't think this happens with day traders so what would that scenario fall under?
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No, typically only the profit at end of all trades would be charged.
So if you bought coins worth 10$k and then you did buying and selling of 10 of thousands and at the end are left with 25k$ and decide to sell it off, then you would be charged for income of 15k$.