Bitcoin Trading Volume at Xapo Bank Surges 14.2% Despite Market Volatility

In the first quarter of 2025, Xapo Bank reported a significant 14.2% increase in Bitcoin trading volume, highlighting the enduring confidence of high-net-worth investors in the cryptocurrency despite market volatility. This surge in trading activity occurred even as Bitcoin faced a challenging market environment, closing the quarter down 13% — its worst start to a year since 2018. The increased trading volume indicates that investors are actively accumulating Bitcoin, viewing it as a valuable asset despite short-term price pressures.

Gadi Chait, head of investment at Xapo Bank, emphasized the long-term viability of Bitcoin, stating, “Despite short-term headwinds, the bigger picture for Bitcoin remains strong.” This sentiment is echoed by the actions of high-net-worth individuals who continue to invest in Bitcoin, demonstrating their belief in its inherent value and potential for future growth.

The rise in Bitcoin trading volume at Xapo Bank coincides with growing global economic concerns, including worries about the primacy of the US dollar and potential recession threats in the United States. These economic uncertainties have led many investors to seek safer alternatives for their investments, with Bitcoin emerging as a popular choice. Euro deposits at Xapo Bank increased by 50% quarter-on-quarter, reflecting a shift in investor sentiment towards more resilient assets. Additionally, there was a notable change in stablecoin deposits, with USDC deposits rising by 19.8% while Tether (USDT) saw a decline of 13.4%, influenced by regulatory changes in Europe.

Another significant development in the crypto space is the substantial growth in trading volume on Bitget, which posted a trading volume of $2.1 trillion in Q1 2025. This figure represents a dramatic increase of 159% in spot trading volume from the previous quarter, highlighting a robust trading environment amidst ongoing market volatility. The total user base on Bitget also rose by nearly 20%, indicating strong adoption and trust in the platform among traders.

Bitget’s CEO, Gracy Chen, stated that the company is prioritizing “institutional-grade infrastructure” while expanding its presence in the Web3 ecosystem. The exchange also demonstrated a commitment to supporting peers in the industry, exemplified by a recent loan of 40,000 ETH (approximately $100 million) to rival exchange Bybit after its security breach. This gesture underscores the collaborative spirit within the cryptocurrency community, as Chen mentioned, “No interest, no collateral — this was simply about supporting a peer in need.”

The activities of Xapo Bank and Bitget underscore a growing trend where high-net-worth individuals are reaffirming their confidence in Bitcoin as a long-term investment vehicle. Despite short-term challenges, the data indicates that the broader sentiment within the crypto space remains positive. As global economic uncertainties persist, Bitcoin’s fundamental value continues to attract investors looking for a secure asset class. With increasing trading volumes and shifts in investment patterns, Bitcoin is poised to remain a significant player in the financial landscape.