Xapo Bank, a Gibraltar-based Bitcoin custodian and private bank, revealed a significant surge in Bitcoin trading during Q1 2025, driven by wealthy investors buying the dip. Despite Bitcoin suffering its worst first quarter since 2018 with a 13% drop, Xapo’s high-net-worth clients increased activity, confident in Bitcoin’s long-term value. The bank reported a 14.2% rise in Bitcoin trading volume compared to Q4 2024.

In addition to the trading surge, euro deposits at Xapo jumped 50% quarter-over-quarter amid fears of a weakening US dollar and a looming U.S. recession, intensified by political uncertainty surrounding Trump’s proposed “Liberation Day” in April. Xapo also noted changing stablecoin trends — USDC deposits rose 19.8% while Tether (USDT) deposits fell 13.4%, reflecting growing European compliance with MiCA regulations.

Xapo, the first UK-licensed bank offering interest-bearing Bitcoin and fiat accounts, launched Bitcoin-backed USD loans up to $1 million in March 2025. Investment head Gadi Chait emphasized that despite short-term volatility, Bitcoin’s true value lies in long-term performance.

Meanwhile, crypto exchange Bitget saw its total Q1 trading volume reach $2.1 trillion, with spot trading alone growing 159% to $387 billion. Bitget added over 4.89 million new users to its centralized exchange and 15 million to its Bitget Wallet app, bringing its total user base past 120 million. CEO Gracy Chen reaffirmed Bitget’s commitment to expanding its Web3 ecosystem.

Bitget also made headlines in February by lending Bybit 40,000 ETH (approximately $100 million) interest-free after a hack. The loan was fully repaid, showcasing a rare moment of solidarity in the competitive crypto world.