Gibraltar-based Xapo Bank, a private bank and Bitcoin custodian, reported a surge in Bitcoin trading volumes in the first quarter as its high-net-worth members scooped up Bitcoin amid market turbulence.
Xapo Bank said that Q1 trading volume grew 14.2% compared to the Q4 2024, as the Bitcoin BTCUSD price drop helped drive trading volume growth on its platform. It said that during the decline, its high net-worth members “actively bought the dip,” reflecting these members’ “commitment to the long-term potential of Bitcoin.”
In the first quarter of 2025, Bitcoin had its worst start to a year since 2018, closing the quarter down 13%.
The crypto-friendly bank became the first licensed bank to launch interest-bearing Bitcoin and fiat banking accounts in the UK in 2025 and launched Bitcoin-backed USD loans of up to $1 million in March 2025.
It also recorded a 50% quarter-on-quarter jump in euro deposits. “This rapid increase in volume came amidst mounting concern about the future of US dollar primacy and the threat of a US recession as markets braced for Trump’s planned ‘Liberation Day’ in April,” the bank said.
There were also significant shifts in Xapo members’ stablecoin deposit patterns, with USDC deposits up 19.8% in Q1 and Tether (USDT) deposits down 13.4%. This shift comes as European cryptocurrency exchanges moved to delist Tether in order to comply with Markets in Crypto-Assets Regulation regulations.
“Xapo Bank member data shows that despite short-term headwinds, the bigger picture for Bitcoin remains strong and current volatility does not diminish Bitcoin’s importance,” said Gadi Chait, Xapo Bank’s head of investment.
Chait added that “while global events painted an erratic picture, the opportunity for Bitcoin has always been in its long-term performance, not its short-term volatility.”
Crypto exchange Bitget also sees Q1 trading volumes surge
Market turmoil also prompted a flurry of activity on digital currency exchange Bitget, according to its Q1 2025 Transparency Report.
Bitget’s total trading volume hit $2.1 trillion in the first quarter of 2025, as spot trading volume saw a quarter-on-quarter increase of 159%, rising to $387 billion.
This surge in trading volume came as Bitget’s total user base grew by almost 20%, with the exchange adding an additional 4.89 million users on its centralized exchange and 15 million users on its Bitget Wallet app — bringing its total global user count to over 120 million.
Bitget’s CEO, Gracy Chen, said the exchange will continue to “focus on institutional-grade infrastructure and double down on expanding its Web3 presence through our ecosystem.”
In February, Bitget loaned rival exchange Bybit 40,000 ETH, valued at approximately $100 million, after Bybit suffered a major hack. The loan has since been fully repaid by Bybit.
“No interest, no collateral — this was simply about supporting a peer in need. Great to see Bybit fully recovered, and we never doubted the return of the loan,” Chen said.
