Xapo Bank reported a 14.2% increase in Bitcoin (CRYPTO:BTC) trading volume in the first quarter of 2025 compared to the previous quarter, as high-net-worth members purchased Bitcoin during a period of price decline.
According to Xapo Bank, the surge in trading activity coincided with Bitcoin’s price dropping to $83,676 and the cryptocurrency experiencing its worst first quarter since 2018, closing down 13% for the period.
The bank, based in Gibraltar, noted that its wealthy clients “actively bought the dip,” which it described as a sign of their “commitment to the long-term potential of Bitcoin” despite short-term market volatility.
Xapo Bank became the first licensed bank in the United Kingdom to offer interest-bearing Bitcoin and fiat accounts in 2025 and introduced Bitcoin-backed USD loans of up to $1 million in March.
The institution also observed a 50% quarter-on-quarter increase in euro deposits, which it attributed to concerns about the future of the US dollar and the possibility of a US recession as markets anticipated political developments in April.
A shift in stablecoin deposit patterns was also recorded, with USDC (CRYPTO:USDC) deposits rising 19.8% and Tether (CRYPTO:USDT) deposits falling 13.4% in the first quarter.
This change followed moves by European cryptocurrency exchanges to delist Tether in response to new regulatory requirements under the Markets in Crypto-Assets Regulation.
“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,” stated Gadi Chait, Xapo Bank’s head of investment.
“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.
In a related development, digital currency exchange Bitget reported a significant increase in trading activity, with total trading volume reaching $2.1 trillion in the first quarter and spot trading volume rising 159% to $387 billion.
Bitget’s user base expanded by nearly 20%, adding 4.89 million users to its centralised exchange and 15 million to its wallet app, bringing its global user count to over 120 million.
Bitget CEO Gracy Chen commented on the company’s focus on institutional infrastructure and Web3 expansion, while also referencing a $100 million loan to Bybit following a security incident, which was fully repaid.
At the time of reporting, the Bitcoin (BTC) price was $83,663.01.