Xapo Bank sees Bitcoin trading surge as wealthy investors bought the dip

Xapo Bank, a Bitcoin-friendly bank, experienced a 14.2% increase in Bitcoin trading volume during the first quarter of 2025. This growth was driven by high-net-worth members who purchased Bitcoin during a market downturn, signaling long-term confidence. Bitcoin itself saw a 13% price decrease in Q1, its worst start to a year since 2018. Xapo Bank expanded its services by launching interest-bearing Bitcoin and fiat accounts in the UK and offering Bitcoin-backed USD loans. Euro deposits at Xapo Bank also surged by 50% due to concerns about the US dollar and a potential recession. There were notable shifts in stablecoin deposits, with USDC increasing and USDT decreasing, likely influenced by regulatory changes. Xapo Bank executives emphasize the long-term potential of Bitcoin despite short-term volatility. Simultaneously, cryptocurrency exchange Bitget reported a significant surge in trading volume, reaching $2.1 trillion in Q1. Bitget's user base also grew substantially, with nearly 20% growth across its centralized exchange and wallet app. Bitget's CEO emphasized their commitment to institutional-grade infrastructure and Web3 expansion. Bitget previously provided a substantial loan to rival exchange Bybit, which was later repaid.