Bitcoin Dip Buyers Flood Xapo Bank as Trading Volume Soars in Q1 2025

TLDR

Table of Contents

Xapo Bank reported a 14.2% increase in Bitcoin trading volume in Q1 2025 compared to Q4 2024
High-net-worth investors actively bought Bitcoin during price corrections
Euro deposits jumped 50% quarter-on-quarter amid concerns about US dollar stability
USDC deposits increased by 19.8% while USDT deposits fell by 13.4%
Bitget exchange also saw massive growth, with spot trading volume up 159% to $387 billion

Xapo Bank, a Gibraltar-based private bank and Bitcoin custodian, has reported a surge in Bitcoin trading volumes during the first quarter of 2025, as wealthy investors capitalized on market dips to increase their holdings.

The bank revealed that Q1 trading volume grew by 14.2% compared to the previous quarter. This growth came despite Bitcoin having its worst start to a year since 2018, closing the quarter down 13%.

According to Xapo, its high-net-worth members “actively bought the dip” during price corrections. In February 2025, BTC buy orders rose to 50.7%, compared to a Q4 2024 average of 41%, as investors took advantage of prices falling below $100,000.

The early months of 2025 initially brought optimism to the crypto industry as Bitcoin briefly topped $100,000. However, market turbulence soon followed, creating buying opportunities for Xapo’s wealthy clientele.

Banking on Bitcoin’s Future

Xapo Bank became the first licensed bank to launch interest-bearing Bitcoin and fiat banking accounts in the UK in 2025. The bank also introduced Bitcoin-backed USD loans of up to $1 million in March 2025.

The crypto-friendly bank has positioned itself to fill a gap in the European banking market. According to Xapo, fewer than 20% of European banks currently provide crypto services.

Gadi Chait, Xapo Bank’s head of investment, emphasized 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.”

Chait added that despite the short-term headwinds, “the bigger picture for Bitcoin remains strong and current volatility does not diminish Bitcoin’s importance.”

Currency Shifts and Stablecoin Trends

Beyond Bitcoin trading, Xapo Bank reported a 50% quarter-on-quarter jump in euro deposits. The bank attributed this rapid increase to “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.”

There were also major changes in stablecoin deposit patterns at the bank. USDC deposits increased by 19.8% in Q1 compared to Q4 2024, while Tether (USDT) deposits dropped by 13.4%.

This shift in stablecoin preferences comes as European cryptocurrency exchanges moved to delist Tether to comply with Markets in Crypto-Assets Regulation (MiCAR). Additionally, Tether has withdrawn its euro-backed stablecoin from the market.

Industry-Wide Growth

Xapo Bank wasn’t the only crypto platform seeing increased activity in Q1. Digital currency exchange Bitget also reported a surge in trading volumes according to its Q1 2025 Transparency Report.

Bitget’s total trading volume reached $2.1 trillion in the first quarter, with spot trading volume showing a quarter-on-quarter increase of 159%, rising to $387 billion.

The exchange added 4.89 million users to its centralized exchange and 15 million users to its Bitget Wallet app. This growth brought Bitget’s 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) in February after Bybit suffered a major hack. The loan has since been fully repaid.

Bitget CEO Gracy Chen stated that the exchange will continue to “focus on institutional-grade infrastructure and double down on expanding its Web3 presence through our ecosystem.”

As Bitcoin trading volumes continue to grow at both Xapo Bank and major exchanges like Bitget, the data suggests that institutional and high-net-worth investors remain committed to Bitcoin’s long-term potential despite short-term market volatility.

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