Xapo Bank, a private bank and Bitcoin custodian based in Gibraltar, reported a 14.2% increase in Bitcoin trading volumes during the first quarter of 2025, as high-net-worth clients took advantage of falling prices. Despite Bitcoin experiencing its worst Q1 since 2018, these investors demonstrated a strong belief in its long-term potential. Xapo also became the first licensed bank in the UK to offer interest-bearing Bitcoin and fiat accounts and introduced Bitcoin-backed loans up to $1 million. Additionally, the bank noted significant shifts in stablecoin deposits, highlighting changing dynamics in the cryptocurrency Market amidst concerns over the US dollar’s future. Overall, Xapo Bank maintains that Bitcoin’s long-term prospects remain strong despite short-term volatility.
Gibraltar-based Xapo Bank, a private banking and Bitcoin custody service, has reported a significant increase in Bitcoin trading volumes during the first quarter of 2025. High-net-worth clients took advantage of the drop in Bitcoin prices, actively buying into the Market amid a turbulent economic landscape.
According to Xapo Bank, Bitcoin trading volume surged by 14.2% compared to the previous quarter. Despite Bitcoin experiencing its worst start to the year since 2018, with a 13% decline by the end of Q1, high-net-worth members used this Market dip to enhance their Bitcoin holdings, demonstrating their long-term commitment to the cryptocurrency’s potential.
Alongside the rise in trading activity, Xapo Bank also became a pioneer by launching interest-bearing Bitcoin and fiat accounts in the UK earlier this year. The bank introduced Bitcoin-backed loans of up to $1 million, reflecting its innovative approach to digital finance.
In addition to Bitcoin trading, Xapo noted a robust increase in euro deposits, which grew by 50% from the previous quarter. Concerns over the future of the US dollar and its implications for a potential recession have driven this demand. Interestingly, stablecoin usage also saw a notable shift, with USDC deposits increasing by 19.8%, while Tether deposits fell by 13.4%. This trend corresponds with regulatory changes in the European crypto Market.
Xapo Bank’s head of investment, Gadi Chait, emphasized that while short-term volatility can be concerning, the long-term outlook for Bitcoin remains strong. Chait stated that the opportunity in Bitcoin lies in its consistent performance over time rather than its momentary price fluctuations.
In a related development, crypto exchange Bitget also experienced a surge in trading volumes during Q1 2025. Total trading volume reached an impressive $2.1 trillion, driven by a 159% increase in spot trading. Bitget’s user base grew by nearly 20%, indicating growing interest and participation in the crypto Market.
Both Xapo Bank and Bitget’s rising trading volumes reflect the enduring appeal of cryptocurrencies like Bitcoin among wealthy investors and the broader Market, even amid economic uncertainties.
Stay updated on the evolving world of cryptocurrency as more news unfolds, and explore the opportunities within this dynamic Market.
Tags: Xapo Bank, Bitcoin, cryptocurrency trading, high-net-worth clients, Bitget, crypto Market.
What is Xapo Bank’s recent trend in Bitcoin trading?
Xapo Bank has seen a big increase in Bitcoin trading. Wealthy investors have been buying Bitcoin while its price is low or “dipped.”
Why are wealthy investors buying Bitcoin now?
Wealthy investors believe the current lower price of Bitcoin is a good opportunity to invest. They think it will increase in value over time.
How does buying the dip work?
Buying the dip means purchasing an asset when its price has dropped. Investors hope the price will go back up, allowing them to make a profit.
Can anyone trade Bitcoin with Xapo Bank?
Yes, anyone with an account at Xapo Bank can trade Bitcoin. It’s open to all investors, not just the wealthy.
Is it safe to invest in Bitcoin with Xapo Bank?
Xapo Bank uses secure measures to protect investments. However, all investments come with risks, so it’s important to research and invest carefully.
