Xapo Bank, a private banking institution in Gibraltar, has reported a 14.2% increase in Bitcoin trading volumes during Q1 2025.

The figure defied broader market sentiment after Bitcoin recorded its worst start to a year since 2018. Notably, the price of Bitcoin dropped 11.7% in the first quarter, yet Xapo’s high-net-worth clients leaned in, actively purchasing BTC amid the market downturn.

Xapo Bank reports a 14.2% rise in #Bitcoin trading during Q1 2025, driven by high-net-worth investors buying the dip despite a 13% BTC price drop. pic.twitter.com/GUynCrqPiy

— TheCryptoBasic (@thecryptobasic) April 15, 2025

The bank noted in its report that clients viewed the dip as a strategic buying opportunity. Specifically, Xapo Bank’s head of investment, Gadi Chait, emphasized that institutional investors remain focused on Bitcoin’s long-term performance rather than short-term market swings despite global tension.

Alongside the trading volume boost, the financial institution also logged a 50% quarter increase in euro deposits. It attributed this to growing concern over fears of a U.S. recession. 

In March, Xapo became the first licensed bank in the UK to launch interest-bearing accounts for both Bitcoin and fiat, along with Bitcoin-backed loans of up to $1 million.

Stablecoin Activities on Xapo Bank

Furthermore, stablecoin activity on Xapo’s platform also shifted dramatically. USDC deposits rose 19.8%, while USDT deposits fell 13.4%. The drop likely reflects European exchange delistings of USDT in response to the EU’s Markets in Crypto-Assets (MiCA) regulatory framework.

Bitget Trading Volume Soars Past $2 Trillion

Meanwhile, crypto exchange Bitget also released its first quarter Transparency Report, showcasing a record-breaking $2.1 trillion in trading volume, a trend consistent with what was observed with Xapo Bank.

Notably, spot trading surged 159%, reaching $387 billion. Bitget’s customer base also exploded, adding nearly 20 million new users across its centralized exchange and wallet app. This brings its total global user count to over 120 million.

In a notable display of industry solidarity, Bitget also loaned 40,000 ETH (~$100M) to Bybit following the February security breach. The interest-free, collateral-free loan has since been fully repaid.

Meanwhile, in its Q1 2025 report, CoinMarketCap emphasized the significant market pullback of the first quarter of the year. It noted a growing disconnect between price and sentiment and a renewed focus on core blockchain technology.

The report attributes the overall market decline to Bitcoin’s underperformance, a drop in retail investor activity, and ongoing macroeconomic uncertainty.

Right now, Bitcoin is attempting to recover, posting an 8% gain over the past week as it reclaims the $86K region.