Bitcoin’s 2025 price swings may not have been predicted, but they impacted market conduct in predictable ways. When asset prices decline, disputes over the allocation of losses often arise; conversely, during periods of rising asset prices, competition increases and the potential for risks associated with improper conduct also escalates. Add in a government’s retreat from regulation and enforcement, and it becomes up to private litigation to fill the gaps to keep the market on course. Litigation risks, in turn, further define the market dynamics.
This is the story of Bitcoin in 2025.