Bitcoin lending in 2025: What’s changed since the last collapse?
Bitcoin’s price has surged since many investors first entered the market, leaving holders with a familiar dilemma: sell now to lock in profits, or keep holding in case prices climb further. That tension is reviving interest in a once-popular — and highly controversial — idea from the prior bull market: crypto lending.
Crypto lending lets holders unlock cash without selling their Bitcoin, effectively allowing them to access liquidity while retaining exposure to potential future gains. The structure is straightforward, but the risks are not: several major lending platforms collapsed during the last downturn, wiping out billions in customer funds and leaving long-lasting wounds across the industry.
In 2025 the conversation is heating up again. A mix of new firms, different business models and shifting regulatory attitudes are reshaping the space. Decentralized finance protocols have gained momentum, centralized lenders are advertising stronger safeguards, and institutional interest is quietly building behind the scenes.
Despite these changes, key questions remain. Are the new players and frameworks meaningfully safer than what came before, or are investors walking back into familiar vulnerabilities? The answer depends on a number of factors — counterparty risk, transparency, custody arrangements, collateral management, and the regulatory environment — and varies widely by provider.
