Week 21. Bitcoin
Bitcoin’s Mainstream Surge, Why Now?
Bitcoin's recent surge past $100,000 has propelled it into the mainstream financial spotlight, attracting significant attention from governments, institutions, and retail investors alike. This milestone raises critical questions about the timing and motivations behind its widespread adoption, especially considering the historical scepticism from traditional financial entities.
In 2025, the US government's establishment of a Strategic Bitcoin Reserve marked a significant shift in its approach to digital assets. This reserve, funded by forfeited Bitcoins held by the Department of Justice, aims to bolster national economic interests and reflects a broader institutional acceptance of Bitcoin (White House, 2025). Similarly, the UK's Financial Conduct Authority (FCA) has proposed lifting its ban on retail investment in crypto exchange-traded notes (ETNs), indicating a move towards integrating cryptocurrencies into traditional financial frameworks (Reuters, 2025).
This institutional pivot prompts scrutiny: Why has the mainstream financial system embraced Bitcoin now, after years of resistance? The asset itself hasn't fundamentally changed; rather, the players and their strategies have evolved.
Bitcoin's price exceeding $100,000 sets it apart from traditional assets. For context, the average stock price on major exchanges like the NYSE or Nasdaq ranges between $60 and $100 (Trading Economics, 2025). Even gold, a long-standing store of value, currently trades at approximately $3,300 per ounce (Business Insider, 2025). This stark contrast raises questions about psychological anchoring: Does a higher price inherently suggest greater legitimacy or safety to investors?
As a legal researcher with an interest in why so many retail traders lose money, one recurring pattern is clear: retail is often late to the party.
Bitcoin’s critics were once dominant in public discourse, now they are the loudest cheerleaders. What changed? For those who held early positions, mainstream acceptance means liquidity, institutional exits, and mass inflow of capital. This dynamic is not new, it echoes previous bubbles and market cycles.
And the concern here is not that Bitcoin itself is a scam, but that its narrative is being carefully managed to extract maximum value from latecomers.
Yes, the influx of institutional support may increase confidence among retail investors. But, it's crucial to recognise that the same institutions now endorsing Bitcoin previously cautioned against it. The FCA, for example, has issued warnings about the risks associated with crypto investments, emphasising the potential for significant financial loss (FCA, 2023). This shift raises concerns about a potential wealth transfer, where retail investors enter the market at peak valuations, possibly bearing the brunt of future corrections.
The pattern of institutional adoption following significant price appreciation invites ethical scrutiny. Are these entities leveraging their influence to capitalise on retail investment influxes? Furthermore, does not the co-opting of decentralised financial tools by traditional systems challenges the foundational principles of cryptocurrencies?
Dr. Craig Wright’s Claims and Legal Rulings
As discussed in Week 16, Dr Craig Wright, an Australian computer scientist, has long asserted that he is Satoshi Nakamoto, the pseudonymous creator of Bitcoin. Central to his claim is the promotion of Bitcoin Satoshi Vision (BSV) as the true continuation of Nakamoto's vision, differentiating it from Bitcoin (BTC) and Bitcoin Cash (BCH).
The UK High Court unequivocally ruled that Dr Wright is not Satoshi Nakamoto. Justice James Mellor stated that Dr Wright had lied extensively and forged documents in an attempt to support his claim (COPA v Wright [2024] EWHC 1198 (Ch)). The court found that Dr Wright engaged in a deliberate campaign to deceive, producing false documents to support his assertions.
Further legal actions have been taken to prevent Dr Wright from perpetuating his claims. A General Civil Restraint Order was issued, barring him from initiating further legal proceedings without court permission (High Court, 2024). Despite these rulings, Dr Wright has continued to assert his claims, leading to additional legal consequences, including being found in contempt of court
For retail investors, its important to note, the legal disputes surrounding Dr Wright's claims highlight the complexities and uncertainties in the cryptocurrency space. For retail investors, this serves as a cautionary tale:
Due Diligence: It's imperative to thoroughly research and understand the assets one is investing in. The existence of multiple cryptocurrencies with similar names (e.g. BTC vs BSV) can be confusing and potentially misleading.
Regulatory Clarity: The lack of clear regulatory frameworks can lead to disputes over the legitimacy and classification of digital assets. Investors should be aware of the legal status of cryptocurrencies in their jurisdiction.
Market Volatility: The cryptocurrency market is known for its volatility. High-profile legal cases can significantly impact market perceptions and valuations.
Given these factors, new investors should approach the cryptocurrency market with caution, ensuring they are well-informed and aware of the potential risks involved.
The legal identity of Bitcoin remains unresolved:
Is it a currency? (Used for transactions)
A commodity? (Like gold, with intrinsic value)
A security? (Subject to investment rules)
In the US there’s an ongoing turf war between the SEC (which sees many crypto assets as securities) and the CFTC (which treats Bitcoin as a commodity) (K&L Gates, 2022). Meanwhile, Europe’s MiCA legislation seeks to regulate cryptoassets under a unified framework, but legal experts have highlighted Bitcoin’s special status due to its decentralised structure and origin (Zetzsche et al., 2020).
This ambiguity means that many investors don’t fully understand what they’re buying. And in the absence of clear rules, consumer protection becomes patchy, especially at the point of mass adoption.
Concluding Reflections: Pause, Research, Proceed with Caution
Bitcoin’s rise from outsider to institutional darling is historically significant. But it’s also a reminder that markets are driven not just by innovation, but by timing, access, and narrative.
This week’s blog doesn’t seek to offer financial advice, merely a reflection on patterns that have played out across asset classes, and across time. When everyone suddenly agrees that something is a sure bet, that’s often when the risk is greatest , not least for retail investors already under-protected by regulatory structures.
So if you’re one of the many wondering whether now is the time to enter the cryptocurrency markets, don’t look for answers in hysteria, headlines or price charts. Look deeper. Research, ask who stands to benefit. And above all, ask why now?
After years of condemnation and regulatory hostility, the ramp-up of endorsements by governments, regulators, and financial institutions has only truly begun now, at a time when Bitcoin is already trading above $100,000. For the everyday investor, this creates an uncomfortable truth: by the time they are given the green light, they are often priced out. This dynamic is not accidental; it’s systemic.
Who fights for the retail investor? The one who is last in line, exposed to the most risk, yet given the fewest protections? Once again, we return to the core question behind my research, why do so many retail investors lose money? Perhaps these carefully staged moments of mass approval, grand institutional endorsements delivered from the top down, offer us part of the answer?
Then again, we may revisit this in 12 months and find Bitcoin has hit $1 million, Who knows? Only time will tell. Until then, get educated!
Reference List
Business Insider (2025) Gold is so expensive that some jewellers are turning to another precious metal – and it’s not silver. Available at: https://markets.businessinsider.com/news/commodities/gold-price-expensive-record-high-lift-platinum-silver-outlook-2025-6
COPA v Wright [2024] EWHC 1198 (Ch).
FCA (2023) Cryptoasset financial promotions: Policy Statement PS23/6. Financial Conduct Authority. Available at: https://www.fca.org.uk/publications/policy-statements/ps23-6-financial-promotion-rules-cryptoassets
High Court (2024) General Civil Restraint Order: Dr Craig Steven Wright. Available via https://www.judiciary.uk/wp-content/uploads/2024/12/COPA-v-Wright-Approved-Judgment-on-Liability-for-Contempt-2024-EWHC-3315-Ch.pdf
K&L Gates (2022) Cryptocurrency regulation: SEC v. CFTC jurisdiction. Available at: https://www.klgates.com/CFTC-and-SEC-Perspectives-on-Cryptocurrency-and-Digital-Assets-Volume-I-A-Jurisdictional-Overview-5-6-2022
Reuters (2025) UK to end ban on retail investors buying crypto exchange-traded notes. Available at: https://www.reuters.com/sustainability/boards-policy-regulation/embargoed-uk-end-ban-retail-investors-buying-crypto-exchange-traded-notes-2025-06-06
Trading Economics (2025) NYSE Composite Index - Stock Prices and Averages. Available at: https://tradingeconomics.com/united-states/stock-market
White House (2025) Announcement: United States Strategic Bitcoin Reserve Policy. Available at: https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserve-and-united-states-digital-asset-stockpile/
Zetzsche, D.A., Buckley, R.P., Arner, D.W. & Föhr, L. (2020) ‘The Markets in Crypto-Assets Regulation (MiCA) and the EU Digital Finance Strategy’, European Banking Institute Working Paper Series, No. 2020/77. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3725395
