Very specifically this has to do with tax brackets. I find myself in the $0 to $39,375 dollar range for income. According to the tax brackets for this, that means I pay 0% in capital gains if I decide to take some bitcoin out. Is that correct? Additionally, if I take out say, $50,000 does what I take out of bitcoin count as income and have an effect on my capital gains tax bracket status?
That depends on bracket on tax on capital gains. I think every country have different tax rates on capital gains. In my country (Philippines), if you gain Php 2,000,000.00 or above or $40k above. You're on bracket 5 which is automatic Php 490,000.00 + 32% of excess over Php 2,000,000.00. That's how they calculate the tax on capital gains. That's I think for domestic.