Bitcoin has cemented its phenomenal 2025 rally, smashing through the $123,000 barrier for the first time in July, driven by institutional demand and a surge of regulatory optimism in the United States. Yet, behind the euphoria, a sobering reality persists: the majority of retail investors are still losing money.
The New Crypto Boom
Several factors are fuelling the current bull run. U.S. President Donald Trump recently signed new crypto-friendly legislation, establishing a clear regulatory framework and allowing for institutional investments via vehicles like spot Bitcoin ETFs. The flood of capital from major asset managers such as BlackRock and Fidelity has further legitimized the sector. As a result, Bitcoin has climbed nearly 30% this year, pushing the total crypto market capitalization towards $3.8trillion.
This fervor extends to predictions from high-profile fund managers. Cathie Wood, founder of ARK Invest, projects that Bitcoin could reach $1.5million within five years, citing its tightening supply and growing adoption among Fortune 500 companies.
Influence of “Finfluencers”—And the Risks
On social media, so-called “finfluencers” have seized the moment, offering advice and riding Bitcoin’s ever-rising hype. Stockholm’s own Ammy Edberg, known online as “Bitchick,” insists the price will ultimately continue its upward march. “The price will go up and down. But in the long term it will continue to go up, I am very sure of that,” Edberg asserts.
But Sweden’s Financial Supervisory Authority (FSA) is urging caution. Consumer protection economist Moa Langemark warns, “It is important to be critical of the source, many actors may have ulterior motives, it could be to get the value or price of a certain asset to move in a certain direction.” The FSA’s research found that one in four young people trust financial influencers—a trend that concerns regulators.
Even Edberg concedes the need for scepticism: “I agree with her, absolutely… You should be extra sceptical when someone says ‘buy this.’”
Winners and Losers: The Hard Reality
Despite Bitcoin’s breathtaking ascent, the FSA study reveals a paradox: over half of Swedes who invested in crypto certificates lost money, even as the price of Bitcoin rose nearly 500%. The culprit is volatile timing—riding the peaks and valleys remains exceptionally difficult. Langemark cautions that those entering the market should do so only with money they can “afford to lose.”
Conclusion: Cautious Optimism
Bitcoin’s new all-time high may mark a turning point as institutional players assume a larger role and crypto regulation becomes clearer. Yet, the cautionary tale remains: while the headlines celebrate record valuations and million-dollar forecasts, the path to profit for ordinary investors is still riddled with pitfalls—a reminder that in the wild world of crypto, fortunes can be easily lost, as well as made.