Xapo Bank, a private financial institution based in Gibraltar, has reported a significant increase in Bitcoin trading activity for the first quarter of 2025, reflecting a growing interest among its clientele in the crypto market.
The bank disclosed that its trading volumes surged by 14.2% compared to the previous quarter. This increase was predominantly attributed to high-net-worth individuals who capitalized on Bitcoin’s price drop to further augment their holdings.
During this period, Bitcoin experienced its most challenging quarterly performance since 2018, concluding Q1 with a 13% decline.
Wealthy Investors Remain Optimistic in Spite of Market Challenges
In spite of the downturn, Xapo Bank emphasized that its affluent clients maintained a strong belief in Bitcoin’s long-term potential, actively engaging in purchasing during the market dip.
The bank views this trend as an indicator of increasing maturity among experienced investors within the cryptocurrency sector.
In addition to this, Xapo Bank has been broadening its range of crypto-banking services. In March 2025, the institution unveiled Bitcoin-backed USD loans that can reach up to $1 million. Earlier in the year, it became the first licensed bank in the UK to provide interest-bearing accounts for both Bitcoin and fiat currencies.
The bank also noted a remarkable 50% increase in euro-denominated deposits quarter-on-quarter, which it attributed to growing uncertainties regarding the dominance of the U.S. dollar and concerns over a potential recession stemming from policy unpredictability during the Trump administration.
Meanwhile, alterations in stablecoin usage among Xapo Bank’s customers became apparent. Deposits in USDC saw an increase of nearly 20%, while Tether (USDT) deposits fell by more than 13%. This shift is likely linked to recent European regulations, compelling exchanges to delist Tether to align with the EU’s Markets in Crypto-Assets Regulation (MiCA).
If you could spend Bitcoin anywhere, what would be your first purchase?
— Xapo Bank (@xapobankapp) March 11, 2025
“Data from our members demonstrates that, despite immediate challenges, the overarching outlook for Bitcoin remains robust,” stated Gadi Chait, head of investment at Xapo Bank. “The real opportunity in Bitcoin has always been about long-term performance rather than daily price fluctuations.”
Bitget Experiences Remarkable Growth Amid Market Flux
In related news, Bitget also reported substantial growth throughout the same period. Its Q1 2025 Transparency Report revealed that the exchange’s total trading volume reached $2.1 trillion, with spot trading volume escalating by 159% to $387 billion.
Bitget’s user base expanded significantly, adding nearly 5 million new users to its centralized exchange, bringing the global total to more than 120 million. Notably, Bitget garnered attention earlier this year by providing a no-interest, no-collateral $100 million Ethereum loan to rival exchange Bybit following a security breach.
The first quarter of 2025 was characterized by a pronounced market pullback, marked by a disparity between price movements and investor sentiment as well as a pivot towards fundamental technology, according to CoinMarketCap’s Q1 2025 Report.
The report revealed a broad market pullback during this quarter, driven by factors such as Bitcoin (BTC) and Ethereum (ETH) underperformance, a decline in retail activity, macroeconomic uncertainties, waning momentum for exchange-traded funds (ETFs), regulatory concerns, and diminishing investor interest that led to reduced liquidity.
Overall, trading volume saw a decline of 40.65% in Q1, with market sentiment hitting its lowest level since early 2023.
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