Gibraltar-based Xapo Bank, a private financial institution known for its crypto-focused services, reported a notable uptick in Bitcoin trading activity during the first quarter of 2025. The bank revealed that trading volumes on its platform rose by 14.2% compared to the previous quarter, largely driven by its high-net-worth clients taking advantage of Bitcoin’s price decline to increase their holdings. Bitcoin endured its worst quarterly performance since 2018, ending Q1 down 13%. Xapo Bank Clients Buy the Dip, Betting on Bitcoin’s Long-Term Value Despite the downturn, Xapo Bank said its affluent members remained confident in the digital asset’s long-term value and actively “bought the dip” during periods of market turbulence. The bank interpreted this behavior as a sign of growing maturity among seasoned investors in the crypto space. Xapo Bank has continued to expand its suite of crypto-banking services. In March 2025, the firm introduced Bitcoin-backed USD loans of up to $1 million. Earlier in the year, it became the first licensed bank in the UK to offer interest-bearing Bitcoin and fiat banking accounts. Additionally, the bank recorded a 50% quarter-on-quarter increase in euro-denominated deposits, which it attributed to rising concerns about U.S. dollar dominance and fears of a looming U.S. recession tied to policy uncertainty under the Trump administration. The bank also noted changes in stablecoin usage among its members. Deposits in USDC rose nearly 20%, while Tether (USDT) deposits declined by over 13%, a trend likely influenced by new European regulations that have prompted exchanges to delist Tether in order to comply 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 “Xapo Bank member data shows that despite short-term headwinds, the bigger picture for Bitcoin remains strong,” said Gadi Chait, head of investment at Xapo Bank. “The opportunity with Bitcoin has always been about long-term performance, not day-to-day volatility.” Bitget Reports Strong Growth Amid Broader Market Activity Elsewhere in the market, Bitget also reported major growth during the same period. According to its Q1 2025 Transparency Report , the exchange’s total trading volume hit $2.1 trillion, with spot trading volume surging 159% to $387 billion. Bitget’s user base expanded rapidly as well, adding nearly 5 million new centralized exchange users and bringing its global user total to over 120 million. The company also drew attention earlier this year for extending a no-interest, no-collateral $100 million ETH loan to rival exchange Bybit following a hack. As reported, the first quarter of 2025 saw a significant market pullback, divergence between price and sentiment, and a shift to the fundamental technology, according to CoinMarketCap’s Q1 2025 Report . The report concluded that Q1 2025 recorded “a broad market pullback.” The reasons lie in Bitcoin (BTC) and Ethereum (ETH) underperformance, declining retail activity, macro uncertainty, a dropping exchange-traded fund ( ETF ) momentum, regulatory doubts, and decreasing investor interest resulting in thinning liquidity. Overall, trading volume fell 40.65% in Q1, while market sentiment hit its lowest point since early 2023. The post Xapo Bank Sees Bitcoin Trading Surge in Q1 as Wealthy Clients Buy the Dip appeared first on Cryptonews .
