Xapo Bank, a private bank and Bitcoin custodian based in Gibraltar, has reported a significant increase in Bitcoin trading volumes during the first quarter, as its affluent members capitalized on Bitcoin amidst market fluctuations.
According to Xapo Bank, trading volume in Q1 rose by 14.2% compared to Q4 2024, driven by a decline in the
BTCUSD
, which encouraged trading activity on their platform. The bank noted that during this downturn, its high-net-worth clients “actively bought the dip,” showcasing their “commitment to the long-term potential of Bitcoin.”
In the first quarter of 2025, Bitcoin experienced the worst start to a year since 2018, finishing the quarter with a 13% drop.
This crypto-friendly institution became the first licensed bank in the UK to offer interest-bearing Bitcoin and fiat banking accounts in 2025, and in March 2025, it introduced Bitcoin-backed USD loans up to $1 million.
The bank also noted a 50% increase in euro deposits compared to the previous quarter. “This rapid growth came amid rising concerns over the future of US dollar supremacy and the potential threat of a US recession, as markets braced for Trump’s anticipated ‘Liberation Day’ in April,” the bank disclosed.
There were notable changes in the deposit patterns of Xapo members’ stablecoins, with USDC deposits increasing by 19.8% in Q1 while Tether (USDT) deposits fell by 13.4%. This shift is taking place as European cryptocurrency exchanges began delisting Tether to comply with Markets in Crypto-Assets Regulation rules.
“Data from Xapo Bank members indicates that despite short-term challenges, the overarching outlook for Bitcoin remains robust, and current volatility does not diminish Bitcoin’s significance,” commented Gadi Chait, Xapo Bank’s head of investment.
Chait further stated that “even as global events create an unpredictable landscape, the true potential of Bitcoin lies in its long-term performance rather than its short-term fluctuations.”
Q1 Trading Volumes Surge at Crypto Exchange Bitget
The prevailing market turmoil also led to a surge in activity on the digital currency exchange Bitget, as per its Q1 2025 Transparency Report.
Bitget reported that its total trading volume reached $2.1 trillion in Q1 2025, with spot trading volume witnessing a 159% quarter-on-quarter rise, climbing to $387 billion.
This remarkable increase in trading volume coincided with a nearly 20% growth in Bitget’s user base, welcoming an additional 4.89 million users on its centralized platform and 15 million on its Bitget Wallet app, bringing its total global user count to over 120 million.
Bitget’s CEO, Gracy Chen, expressed the exchange’s commitment to “enhancing institutional-grade infrastructure and amplifying our Web3 presence through our ecosystem.”
In February, Bitget extended a loan of 40,000 ETH, approximately valued at $100 million, to rival exchange Bybit following a significant hack that impacted Bybit. The loan has since been repaid in full by Bybit.
“There was no interest and no collateral involved — this gesture was simply about supporting a peer in need. We are pleased to see Bybit has fully recovered, and we never doubted the return of the loan,” Chen commented.
