Xapo Bank, a Gibraltar-based private bank and Bitcoin custodian, has reported a significant increase in Bitcoin trading volumes during the first quarter, as its affluent members took advantage of market fluctuations to buy Bitcoin.
The bank indicated that its trading volume for Q1 saw a rise of 14.2% compared to Q4 2024, driven by a decline in Bitcoin (BTC) prices that encouraged trading activity on its platform. During this downturn, its high-net-worth members “actively bought the dip,” showcasing their “commitment to the long-term potential of Bitcoin.”
In Q1 2025, Bitcoin experienced its worst annual start since 2018, finishing the quarter down 13%.
Xapo Bank became the first licensed bank in the UK to introduce interest-bearing Bitcoin and fiat banking accounts in 2025 and also initiated Bitcoin-backed USD loans of up to $1 million in March 2025.
Xapo Bank’s self-selected poll on X indicated that respondents preferred using Bitcoin for savings and investment. Source: Xapo Bank
Moreover, there was a notable 50% increase in euro deposits quarter-on-quarter. “This sharp rise in volume occurred against a backdrop of rising concerns about the future of US dollar dominance and the potential threat of a US recession as markets anticipated Trump’s planned ‘Liberation Day’ in April,” stated the bank.
Additionally, there were notable changes in the stablecoin deposit behaviors of Xapo members, with USDC deposits rising by 19.8% in Q1, while Tether (USDT) deposits fell by 13.4%. This alteration coincides with European cryptocurrency exchanges opting to delist Tether to align with Markets in Crypto-Assets Regulation guidelines.
“Data from Xapo Bank members indicates that, despite short-term challenges, the overall outlook for Bitcoin remains robust and the present volatility does not lessen Bitcoin’s significance,” said Gadi Chait, head of investment at Xapo Bank.
Chait further remarked that “while global events present an unpredictable scenario, the real opportunity for Bitcoin has consistently been its long-term performance rather than its short-term fluctuations.”
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Bitget Experiences a Surge in Q1 Trading Volumes
The turbulence in the market also led to increased activity on the digital currency exchange Bitget, as highlighted in its Q1 2025 Transparency Report.
Bitget reported a total trading volume of $2.1 trillion in the first quarter of 2025, with spot trading volume witnessing a staggering quarter-on-quarter increase of 159%, reaching $387 billion.
This growth in trading volume coincided with an almost 20% expansion in Bitget’s user base, which added 4.89 million new users on its centralized exchange and 15 million users on its Bitget Wallet app, bringing its total global user count to over 120 million.
Gracy Chen, CEO of Bitget, stated that the exchange will continue to “prioritize institutional-grade infrastructure and enhance its Web3 presence through our ecosystem.”
In February, Bitget extended a loan of 40,000 ETH, valued at approximately $100 million, to rival exchange Bybit following a significant hack. This loan has since been fully repaid by Bybit.
“No interest, no collateral — this was merely an effort to support a peer in need. It’s fantastic to see Bybit fully recovered, and we had complete confidence in the loan’s return,” Chen remarked.
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