TLDR:
- Xapo Bank reported a 14.2% increase in Bitcoin trading volume in Q1 2025 compared to Q4 2024
- Bitcoin buy orders rose to 50.7% in February 2025 as wealthy investors “bought the dip” below $100,000
- Euro deposits jumped 50% amid concerns about US dollar future and potential recession
- USDC deposits increased 19.8% while USDT deposits dropped 13.4%
- Bitget exchange also saw huge trading volume growth, reaching $2.1 trillion in Q1 with spot trading up 159%
Gibraltar-based Xapo Bank has reported record Bitcoin trading volumes in the first quarter of 2025. The digital asset-friendly regulated bank saw Bitcoin trading volume increase by 14.2% compared to the previous quarter, despite Bitcoin experiencing its worst start to a year since 2018.
The surge in trading came as Bitcoin prices dipped below the $100,000 mark in February. During this correction, Xapo Bank reported that buy orders rose to 50.7%, up from a Q4 average of 41%, indicating that investors were actively “buying the dip.”
Xapo Bank caters to high-net-worth individuals who showed strong confidence in Bitcoin’s long-term potential. These wealthy clients used the price drop as an opportunity to accumulate more of the cryptocurrency, demonstrating what the bank called a “commitment to the long-term potential of Bitcoin.”
Fiat and Stablecoin Deposit Shifts
The bank also reported major changes in deposit patterns. Euro deposits at Xapo Bank jumped by 50% in total volume during Q1 2025. This increase came amid growing concerns about the future status of the US dollar and fears of a potential US recession.
US dollar-pegged stablecoins showed different trajectories. USDC deposits increased by 19.8% in Q1 compared to the previous quarter. However, USDT (Tether) deposits dropped by 13.4% during the same period.
The decline in Tether deposits coincides with Tether’s withdrawal of its euro-backed stablecoin. Several European cryptocurrency exchanges have also delisted USDT to comply with Markets in Crypto-Assets Regulation (MiCA).
Gadi Chait, Head of Investment at Xapo Bank, commented on these trends.
“While global events painted an erratic picture, the opportunity for Bitcoin has always been in its long-term performance, not its short-term volatility,” Chait stated.
Expanding Banking Services
Xapo Bank has been expanding its services to bridge traditional banking and cryptocurrency. In 2025, it became the first licensed bank to launch interest-bearing Bitcoin and fiat banking accounts in the UK.
The bank also introduced Bitcoin-backed USD loans of up to $1 million in March 2025. This move further positions Xapo at the intersection of traditional finance and digital assets.
Xapo highlighted that fewer than 20% of European banks currently provide crypto services. The company sees this as an opportunity to deliver cryptocurrency solutions within a traditional banking environment.
Industry-Wide Growth
The surge in trading wasn’t limited to Xapo Bank. Cryptocurrency exchange Bitget also reported massive growth in its Q1 2025 Transparency Report. The exchange’s total trading volume reached $2.1 trillion in the first quarter.
Bitget’s spot trading volume increased by 159% quarter-on-quarter, rising to $387 billion. The exchange added 4.89 million new users to its centralized exchange and 15 million to its wallet app, bringing its total global user count to over 120 million.
In a show of industry solidarity, Bitget loaned rival exchange Bybit 40,000 ETH (valued at approximately $100 million) after Bybit suffered a major hack in February. Bitget CEO Gracy Chen noted that the loan, which has since been repaid, was provided without interest or collateral to support “a peer in need.”
Despite the overall market turbulence in Q1 2025, these reports from major crypto financial service providers indicate continued institutional and high-net-worth interest in Bitcoin and other digital assets. This suggests an ongoing maturation of the cryptocurrency market even during periods of price volatility.
Read More: Bought The Dip: Xapo Bank’s Wealthy Clients Snapped Up 50% More BTC in Q1